Agree with above comments.
You have no basis for going to the state medical board, nor would it be appropriate. Furthermore, this guy probably does not have a medical license yet, as he is an FMG and generally they can't get one until completing a residency, unlike US grads. Also, you seem to have appointment yourself God despite having <1 year on the ward on which to base your judgments about who is going to be a good physician vs. who is not.
I doubt the resident is anywhere near as "stupid and incompetent" as you seem to be convinced. For one thing, he has passed Step 1 and 2, and very likely Step 3 as well, in a language that is probably not his native language.
His giving you a crappy lecture and not seeming to remember all the details about MS don't really prove anything. If his neuro knowledge isn't good enough he won't be able to pass the neurology boards, and won't be able to call himself a neurologist. At any rate, I'm assuming you have <1 month's contact with this resident, which isn't nearly enough to assess his knowledge base. Also, you as a 3rd year medical student don't have the level of knowledge to assess that of a 3rd year neuro resident. Just because you remembered more about MS (or thought you did) doesn't really prove anything...the further one gets from 1st/2nd year, the less one tends to remember about basic science (unless one goes into lab research), but the more one learns about how to apply it.
Not being good at LP's at this point in his training could mean several things. The first one that comes to my mind is that this is a crappy neurology residency and nobody is teaching this guy. The fact that hey "fired a bunch of people" a couple of years ago is a big red flag. Which is more likely, that they just happened to recruit a bunch of stupid, malignant residents or that the program is malignant and/or has bad teaching. I can tell you which one I think is more likely. Not that it's not concerning, but I think you are rushing to judge. Also, some LP's are a lot more difficult than others, depending on the particular patient's anatomy and whether he/she is obese, has arthritis or prior surgery, etc.
It is totally appropriate for you to mention your concerns to your attending and/or your clerkship director in an appropriate way. Mentioning that you were concerned about the techniques on the LP, etc. would be O.K. Making blatant statements about "stupidity and incompetence" would be unhelpful and unwarranted.