Hello Graham, just read of your disappointment but don't despair just yet.
First off you say your fuel is a couple of years or more old – that shouldn't be a problem but… if the cap wasn't on really tight the ether content can gradually evaporate away – seen that happen more than once which usually leads to blaming everything bar the fuel. Do you have another engine that you know runs you can test it with? That said John will have some fresh stuff for sure.
Your piston fit 'sounds' okay to me from your description – a good test if you are not too sure is to prime the exhaust with some neat paraffin and just slowly turn the piston up the bore against compression – you should get a degree of bubbling around the exhaust ports but not too excessive – try again with some fuel – if it is excessive then your piston/liner fit may need addressing.
If the compression feels okay it's got to be something really out of kilter not to at least get a fire from a prime unless of course you have it well and truly flooded. In that case if it feels 'wet' close the needle completely, keep flicking and blowing across the exhaust ports until it seems 'dry'. From this point gently adjust the comp on exhaust primes alone until you get a burst. That should happen 'all things being equal' on the build quality. Once you get a couple of bursts from an exhaust prime gradually open the needle a bit at a time until the bursts start to lengthen hopefully finally into a run.
If you can't get it to fire at all then it's rethink time I guess but if anyone can get it to work it'll be Johnny Alcock
Don't give in quite yet
Regards – Tug