With most purge bulbs, the shortest nipple on the bulb is the suction one and it should go to the nipple on the carb. The longer nipple on the bulb should return fuel to the tank and the line from it is usually terminated just inside the top of the tank. There are 2 one-way check valves built into the purge base and they keep fuel moving in only one direction, if they are hooked up backwards, the purge bulb won't pump fuel and the check valves will be pointing in the wrong direction, allowing air from the top of the tank (above the fuel level) to be sucked into the carb. It sounds like yours is hooked up right so I don't understand why there would be air bubbles in it when running. When you press the bulb, can you feel fuel being squished through it and can you see fuel coming out of the return line to the tank? Are you sure the purge bulb is connected to the right fitting on the carb and not to the main fuel supply fitting (the one nearest the pump cover with one central screw) that should have the supply line with the filter connected to it?
I'm suggesting that if you have a problem with the purge, just eliminate the purge, it isn't needed. The easiest way to do this is to remove the purge line from the carb and plug the fitting on the carb and the easiest way to plug it is to get a 1" piece of fuel line, plug one end of it with a piece of nail and push the other end onto the carb purge fitting.
I'm suggesting that if you have a problem with the purge, just eliminate the purge, it isn't needed. The easiest way to do this is to remove the purge line from the carb and plug the fitting on the carb and the easiest way to plug it is to get a 1" piece of fuel line, plug one end of it with a piece of nail and push the other end onto the carb purge fitting.