if the metering lever (correct term?) was too high or too low would that cause this? which would cause it to flood out? Too high or too low?
Yes it could. You also mentioned using an old one. Not a good thing to do. The get very visible wear and it is best to replace them.
You seem to be well and truly on the home run now but I'm wondering whether all that smoking may have been caused by fuel or oil having accumulated in the bottom of the muffler.
If the mixture had been out enough to make it smoke (profusely) and to let fuel dribble out of the muffler it more than likely would not have run at all. A very small amount of black fluid coming out can be quite normal.
Agree with a previous poster about not dousing the internals of a saw with unnecesaary amounts of oil when assembling. Very little is needed; wrist-pin (through the underside of the piston at the little-end of the conrod), crank bearings (main and big-end) and piston rings. A couple of drops ONLY on each. Smear the oil right around the ring/s.
Spin the motor a few times before you even fuel it to distribut the oil and make sure everything is happy.
Also, next time you flood a chainsaw;
*Crank it vigourously with the throttle wide-open and NO CHOKE
if that doesn't work
*Pull the plug out and crank the thing vigourously again (with the plug-hole facing down if possible). Before replacing the plug get a propane torch onto the spark end of the plug and give it a really good cooking. Then hit it - clean it - with a wire brush, and then blow it to remove any leftovers.
Plugs can wear-out (the anode and electrode) and it's quite visible, but they hardly ever just stop working electrically - unless they are dropped. People waste a LOT of money on plugs, I reckon. They do get fouled, but that's not failure and it takes only a couple of minutes to correct with a torch and a wire brush..