Last night i noticed I could see sparks coming from where the engine connects with the spark plug. I was wondering is it safe to ride? Or if I need a new spark plug to seal the sparks.
are you 100% sure its not from the spark plug wire boot? if it was me I would not ride it anymore then I needed to till I fixed it because these CDI are weak and there is a possibly that a stray spark could short out your CDI.
try changing spark plug maybe the plugs insulator is bad. I have one question you can see the spark jumping to a fin on the head right? and not jumping from boot to plug. Im not doubting you just trying to point out things I myself have missed in the past.
that ring should be compressed very tightly - I suspect that you have cross threaded your plug and are seeing flames from the combustion rather than sparks
take out the plug and put it back with fingers only until it is all the way down, then use your wrench on it - if it won't go in easily, you may need a new head or a helicoil in the head