If you need a place to hold your images, you can set up an account with Imageshack.com and link the images into your posts in here... There are several other free image hosting sites you can use as well and most of them have an easy way to resize them for forum posting...
Back to the issue at hand... What does the inside of your cylinder look like with the head off and the piston all the way down at bottom dead center? Are there any scratches in the bore, any plating peeled off or missing? What kind of compression pressure readings were you guys getting when you checked the compression?
If you snagged a ring you'll have some nasty scratches inside the bore or some gouging at the ports etc, if it looks perfectly mirror smooth with some minor scratches it could be from dust and dirt making it passed the stock air filter, and if the bore looks perfectly mirror smooth with no scratches or plating damaged or missing it's possible the cylinder glazed before the rings seated which can cause some poor compression with no damage or gasket leaks etc...
Since you're saying you lost spark tho, let's look there first... Do you or any of your buddies have a multimeter? do an Ohm check from the black wire to the blue wire coming off your magneto with the CDI disconnected, look for a reading between 300 and 500 ohms, it can read higher or lower and still be good, but you don't want a really high or infinite reading meaning you got an open circuit or broken wire, and you don't want a really low reading like less than 100 ohms (give or take) or close to zero, or zero... this means the coil has a short somewhere in it and the mag coil is no good.
A good mag coil should read between 300 and 500 ohms (give or take up to about 100 ohms in either direction).
If the mag coil checks good, then check the CDI by plugging a known good one into your circuit and check for spark. If you got one of those plastic spark plug boots it's also possible that's the problem. You can un screw the boot off the wire and strip about 1/2" of the insulation off the wire then clip the bare wire to your plug and see if it sparks, if the plastic boot is the problem get a terminal and boot for an automotive spark plug and crimp it to your wire, slide a rubber boot over it, screw on one of those little snap adapters to your spark plug and clip the new end onto your plug... Lots of info on how to do just that.
I don't get why people are telling you you got a broken or snagged ring if compression tested good and you have no spark???