Relax, if the Heli Coil does not do the trick (which it should) maybe you can pick up a used motor on ebay. As of right now, there is a 1987 parts motor (not sure if it's the same) going for just over $100.00. Check it out, maybe that's the way to go. I really hope it all works out for you. The best memories of my "Younger days" was riding with my friends. Don't take it personal that the bike needs some repairs. As a parent, I think trying to get your friend into riding is an absolute great thing. I may be 42 but I still love going out in the garage, turning on the tunes and working on my KDX. Well, to be truthful, for me it's therapy. When I was younger, it was just plain fun! Enjoy the times working on the bike with your buddy and don't be down that the bike needs some help.
Good luck, I wish more kids would try to get their friends into dirt bikes and not into other stuff......