It is getting fire both ways. This is the most screwed up project I have ever had! It runs great when it is pull started, but it will not even attempt to start with the starter. I know it is out of gear, as this yamaha will not allow the starter to spin with the trany in gear.

 

Hmmmmm...

I wonder if its possible there is a decompression mechanism that is only working (malfunctioning) when the pushbutton starting. Try a compression test (cheap guages are like $20) and see if you are getting the same results for both pull and button starting, the cheap guages arent all that accurate but will tell us what we need. The only thing left after that is fuel..

 

Like 007 said spark,compression and fuel. If your compression is good it could be crank seals or an air leak from somewhere else.