okay first get the motor back, unless hes taken the barrel off it forget about the rings. sounds like your carburettor needed a proper clean and the valves needed doing.
2nd - measure the height of the barrel itself and the diameter of the bore. then you can work out what the actual capacity of the motor is.
3rd - get on ebay and buy a full rebuild kit for that capacity engine. they are about $15 total. your gasket probably didnt work on the head because they proper ones have a little seal impregnated on them so they dont leak everywhere.
4th - The carb. If you still have all the pieces make sure you take all of them out and blast it out with carb cleaner then hold the jets up to the light and make sure you can see through them perfectly. just shooting carb cleaner at the thing wont do a thing

also make sure the atomizer tube (the one in the middle of the carb) has the holes along its length. if you screw the main jet in all the way it crushes the tube and then the carb is useless. stupid design
5th - get a can of permatex gasket remover and spray it on the top of the barrel to get all the old gasket off (make sure you take off the pair of rubber o rings on top of the barrel before you do this too). the top of the barrel should be spotless with no bits of gasket left on it.
same with the bottom of the head. unless they are like new you wont get a gasket to seal on it.
6th - then you can use your new gasket set to bolt it all back together, set your timing, do your valve clearance (.1mm on the intake .15mm on the exhaust) and put in some new 10w40 wet clutch compatible motorbike oil and your all set
or should be
Send me a PM if you get stuck and i can send some photos. or if you get really up S creek with no paddle bring it over if your in nsw. I just finished doing a pair of them, they arent too hard at all and you can do a full on rebuild really cheap. everything is cheap for these motors. i was surprised at what your money can get compared to normal pocket bikes
good luck.