After tinkering with her a bit more, I think I have a broken fuel pump...
I do have, compression and spark, so I should only be missing fuel, right?, added some starter fluid and I ran for 2 secs, I read somewhere in the manual that you should be able to hear the fuel pump priming about 5 secs just after moving the key to ON position, the kid's bike doesn't do that...
I removed the fuel tank & pump, according to the service manual if you connect pins B & C directly to a well known 12V battery it should work, ours doesn't, after a quick dive in eBay, we bought a used fuel pump for 55 bucks, sure beats the hell out of the 500 for a new one... quick question, will a working used one be enough, or am I being cheap and I should bite the trigger and get the new one?
Thanks for all your help, have a great weekend, and ride safe!
Joe