Welp
It's been almost 4 months to the day since I started this thread with a working but tired 262XP. I can finally say it's finished. I was waiting for some carb parts and new spark plug boot kit since I trashed mine but I finally got it all.
I'm not sure I should say how it ran initially to save some embarrassment, but I will tell the story on the off chance someone reads this and does the same thing.
As I said a few months ago, I brought the saw into my house to work on during the day when I had spare time instead of having to go out to the shop. It worked pretty well but I ended up with parts and tools spread everywhere. Skip ahead to 2 days ago when I finished putting everything back together...
I took the new-looking 262 out and put some fresh mix in it and started pulling. It started up after about 7 pulls but was running funny. I figured the carb just needed tuned since I rebuilt it. I messed with the screws, put them back to 1 turn out, etc. but nothing worked. The saw would surge and then die when I was revving it up. It got to be pretty frustrating when I couldn't figure out what was wrong. I started thinking air leaks in the new seals I installed, the new intake parts, everything. I tried to take a video to post on here to get help but couldn't get my phone to sit while I tried starting it.
Finally I decided I might as well do a vac test just to confirm the leaky seal or intake boot I was convinced it was. I took off the muffler and saw the problem right away. I never tightened the head bolts down after I installed the new piston. I guess I didn't have time that day or I just decided to tighten them some other day. All 4 were pretty loose. So I tore it apart, replaced my crappy paper gaskets with a real once just to be sure that wasn't the problem and fired it up again. Runs perfect.
Only problem is now the squish is way over .020 again. I haven't tested the compression, but it's pretty high based on my shouldermeter. I even heli-coiled some stripped bolt holes for good measure. It got a nice new loop of LGX and a new Husky-branded bar just for pictures. I'll use the old bar I have until it's worn out.
Here are the pictures I took so far. They're from my phone so may not be the greatest but they will work for now.
<table style="width:auto;"><tr><td><a href="https://picasaweb.google.com/lh/photo/62HCrzIYBH4V5S_tgjeYPx6Am4C2dIPD1a1T2C1IzyM?feat=embedwebsite"><img src="https://lh6.googleusercontent.com/-DAJdxmkvgLY/UAr4OdOmPYI/AAAAAAAAE_Y/61fNvWC9rB0/s800/upload_1000009FC771B3_2012.07.21%252C18%253A42%253A45%252C533_705936EE.jpg" height="451" width="800" /></a></td></tr><tr><td style="font-family:arial,sans-serif; font-size:11px; text-align:right">From <a href="https://picasaweb.google.com/mark.dellaquila1/DropBox?authuser=0&authkey=Gv1sRgCK2BvNLnioW15AE&feat=embedwebsite">Drop Box</a></td></tr></table>
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<table style="width:auto;"><tr><td><a href="https://picasaweb.google.com/lh/photo/0-ozRogCDrenIH_j0KXJSx6Am4C2dIPD1a1T2C1IzyM?feat=embedwebsite"><img src="https://lh3.googleusercontent.com/-UPrPIkjgKgk/UAr42P6IJnI/AAAAAAAAFAA/zv_Mur1QU0I/s800/upload_1000009FC771B3_2012.07.21%252C18%253A45%253A30%252C290_BD4656B7.jpg" height="800" width="451" /></a></td></tr><tr><td style="font-family:arial,sans-serif; font-size:11px; text-align:right">From <a href="https://picasaweb.google.com/mark.dellaquila1/DropBox?authuser=0&authkey=Gv1sRgCK2BvNLnioW15AE&feat=embedwebsite">Drop Box</a></td></tr></table>
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<table style="width:auto;"><tr><td><a href="https://picasaweb.google.com/lh/photo/JZRG52UTMABlonjiDyCYbR6Am4C2dIPD1a1T2C1IzyM?feat=embedwebsite"><img src="https://lh6.googleusercontent.com/-NzwjxfRsm5E/UAr5QB2L9hI/AAAAAAAAFAw/BIJGsUh5N8Y/s800/upload_1000009FC771B3_2012.07.21%252C18%253A47%253A13%252C906_3425E2E7.jpg" height="451" width="800" /></a></td></tr><tr><td style="font-family:arial,sans-serif; font-size:11px; text-align:right">From <a href="https://picasaweb.google.com/mark.dellaquila1/DropBox?authuser=0&authkey=Gv1sRgCK2BvNLnioW15AE&feat=embedwebsite">Drop Box</a></td></tr></table>