try this Gus.
Pull the cylinder off and carefully remove the ring. now insert the ring into the cylinder by itself so its sitting even in the cylinder, now measure the gap in the ring at the ends. if the gap is .020 of in inch or over, its worn out. a new ring end gap when in the cylinder like this should measure about .004 or .005 thousands of an in in gap area.
if the gap is anywhere between .004 and .020 i d say its good.
a few questions for you i didnt see info to answer yet.
1. what exact 29cc top end is it that you have installed? the CY 29RC, or the GP290 topend? or is it the older CY?
2. what Stroke crank is installed, a 28,29, or 30mm Crank?
3. if a 29mm or 30mm crank what gaskets are you using under the cylinder?
4. how is the coil gap? it should be around .015 thousands?
5. are you sure your fuel lines arnt pinched? and the Vent Cap inst plugged causing a vacuum lock in the gas tank? and is allowing fuel to flow?
6. you sure all the gaskets are sealing good, carb to intake manifold, manifold to cylinder, cylinder to case. case gasket isnt leaking?
if the ring is new and the cylinder is in good condition, then you should have fine compression as you say you do. if all gaskets are in good shape and you don't have an air leak, then that leaves fuel and spark. if you putting a tad bit of fuel into the plug hole and don't get it to atleast Pop after putting it back together, then you have a spark issue or other electronic issue.
the fact the motor ran on the bench, but not in the car leads me to believe its fuel delivery.