Bummer on the stripped head, I'd say you could helicoil it but the helicoil kit costs more than the head... You can get a Fred head from his site for $39.99 tho once you get some funding built up.
For the no spark condition, take the multimeter and set it to read Ohms... Put the red lead in the volt/ohms socket in the meter, and the black to Common
Place the leads on the black and the blue wires coming out of the engine, you're looking for 300 to 500 ohms, give or take a few either way. If it reads really low it's shorted out and needs to be replaced, and if it reads really high, or just reads 1- this means it's an open circuit, if you're lucky it's just a poor ground connection at the other end of the black wire, if that's connected good and there's continuity to the engine from the black wire then the mag coil is bad. The mag coil is good if it reads anywhere in the 300 to 500 ohms range, it can read lower or higher tho and still be good... just nothing extremely out there...
Some say you can test the resistance on the cdi unit it's self but I wouldnt rely on this, if the mag coil checks good and the mag rotor is keyed properly on the crank shaft and there's no spark, just buy another new cdi, these things do go out from time to time and having a spare or 3 isnt a bad idea.
For the mag rotor, the magnet... if you can turn it independantly from the crank it's possible the key broke or is missing all together, the mag rotor's key slot should be in about the 1 o clock position with the piston all the way up at TDC, if it's not in that position we got a problem... either a broken or missing key. You have to remove the nut that holds the mag rotor on to check the key slot position, this thing can go on backward and it will not fire the plug at the right time if it does go on backward so mark it permanently somehow if you remove it for any reason. There are ways to tell if it's on right or backwards, but if you mark it before removing it, that's probably the safest way. You shouldn't have to remove the mag rotor anyway, just take off the nut and check the position and put the nut back on if it checks good.