I am not following all that..
Were you unable to turn the rear wheel while the bike was on a stand and in Neutral?
That sounds like a transmission problem.
In gear, clutch in and unable to turn the rear wheel might be just a heavy case of clutch drag. Certainly not desirable but not necessarily a problem you need to resolve. It should get better when the engine warms up.
The kick starter jammed up is a problem. I would be really surprised if the engine seized in this situation. The place it would have seized was climbing a sand dune, not a quick start in the garage. It is possible that it simply jammed: try putting the bike down on the ground, shift to 3rd or 4th, then rock the bike back and forth. If you take the spark plug out you should be able to easily turn the engine over by rolling the bike in gear. It is possible that just getting the engine to turn over will free up the kick starter.
If the bike won't roll in gear, spark plug out, then you have serious seize problems. It doesn't sound like cylinder, you might have a problem in the crankcase/transmission.
As for doing it yourself: Top end, clutch and kickstarter are fairly easy things. You will need a good repair manual. Not the "owner's manual", a manual that tells you how to tear it apart and put it back together. Lots of pictures of internal parts. The Honda service manual is expensive and will probably keep referring to all sorts of special Honda tools. Buy an after market manual, such as one published by Clymer. You can buy one for about $25, most bike shops will have them.
If you are willing to get your hands dirty and you can read the manual it shouldn't be too hard. Now, if the problem is down in the crankcase or transmission, which requires splitting the case, I would think twice. I wouldn't recommend that as a first venture into bike mechanics.
Rod