sounds like something's lost it's teeth, the tappet plate is moving so the sector gear is spinning.
that piston looks beat up but not as bad as my f2000's which was still firing (albeit at about 90fps ), do you have another piston to try?
other possibility is if you've had the sector gear bearings explode would mean it's not engaging properly, although you'd have know by the metal chunks splatted around it's insides.
The combination of the slightly collapsed rear of the piston and the terrible angle of engagement means the sector gear pick up tooth is completely missing the piston, and is actually passing behind the piston pick up tooth.
If you're using the stock M120 motor on 11.1v and stock gearing (G&P use a 20.2:1 ratio in a lot of their gearboxes) then you shouldn't need a lightened piston.