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Also , was the plug out when you were turning the engine with the fan ? It seemed a little too easy to turn , and it also sounded a little rough .

Okay. The first thing noticeable is that the engine was running VERY rich. That is why your spark plug and piston are black as night. Once the scooter is up and running the carb will need to be tuned. To do that access is needed to both the fuel mixture screw and main jet. You may be able to get away with just the fuel mixture screw, but both are preferable. That can be done by unrestricting it or purchasing a replacement online. Carb tuning guides are available in the tech library.

Next will be servicing the motor. Replace all fluids for the engine. Not sure if it is 2 or 4 stroke, but you need to be sure you have good lubricantion. Next would be the decision of if your going to reuse the position and cylinder wall or replace it. If you go with a stock 49cc replacement set, the cost is not bad. A replacement piston and cylinder wall would be preferable since there was that huge scuff mark on the top of the piston. Once the engine is put back together next would be checking the valve lash. Intake and ex take valves for a 49cc should be .003 inches.

After the engine would be dumping all old fuel and starting fresh. With the tank empty check all fuel line connections and replace the fuel filter. They are very cheap.

Next remove all those emission controls on the scooter. They may also be partly to blame for the poor condition of the engine. Instead of allowing the engine and gas tank vent to the atmosphere, they recirculate dirty fumes back into the cylinder to "burn". That burning is very inefficient and ruins the air/fuel ratio. Removing those allows only clean air and fuel to be burned.

Those steps should get you back to a fairly decent working order.

Hmmm. Well, it looks to be running rich, to say the least. I wonder what the main jet in the carb is? How many miles on the engine?

Since you have the piston off the rod, I'd check for play in it--- a bit (1 or so mm) of left/right sideplay is ok and pretty normal, but up/down play where the rod bearing is (you cant see it) is not good. I'd at least rule that out before putting back together.

Did the people you bought it off of mention any symptoms at all, other than it just "not running right"?

If you are up for it , an willing to do a little work , I would get the valves adjusted correctly , replace the spark plug , make sure the battery is good and charged ,get the carb cleaned and see if the scoot will turn over . if it turns over but do sent start , you will want to check to make sure you have spark . if not it could be as simple as replacing some electrical components . most of the work on these scoots are bolt on , or plug 'n go . some you will have to use certain tools for , like to check valve clearance , and you will want to make sure the engine is in time " which is all pretty easy to learn " . there are many videos u can watch that will take through each process step by step .