It's a 2 stroke, it will smoke some. They burn oil with the gas as they run for lubrication. The richer the mixture, the more smoke you will get. Rich jetting can also cause this. It's possible you need rings, but two strokes do smoke some.
The exhaust spooge you are getting at the joints is normal. Again, more with a richer mixture. I have also heard that if you get spooge dripping out of your silencer, the packing material in the silencer is likely saturated and needs to be replaced. This may also be the reason for the spooge at the joints.
Likely, when you went up a gear, you actually only went up halfway and went into neutral. That is why it was revving and not moving. Push it down again to get it back into gear. If you were riding in mud and water, likely it was steaming off the exhaust and engine because you were revving the crap out of it and it was hot :)
The kill switch issue might be a problem though. You need to hold it down until the engine dies. If this doesn't work, you should get it fixed. It would suck not to have that if there is a problem while you are riding.
Hard starting... Do you know how to use the choke on the carburetor? If no, it really helps to get the bike going when cold. Apply the choke, kick til it fires up, then turn it off and let it warm up a bit before riding.
It's just a lack of knowledge/experience with machines. Once you do this for a while and ask enough questions, you will get a better feel for what is normal and what is not. It takes a bit of time. You can change the plug if you like, that may help, but if it does fire up and run, the plug is working.
I hope this helps (as a start).