Hey Robin, a bit more positive results today but still not running smoothly. Starting isn't a problem, usually fires on the first or second pull but keeping it running is difficult. Runs ok with the choke pulled halfway out. When I push the choke in, the engine surges for a bit then dies. When I work the throttle it slowly dies like it's starved. I've kept it running for maybe a minute if I keep the choke at halfway. If I attempt to move it either direction it dies.
Seems carb related to me. I'm going to check the metering level and the diaphragm again.
Does sound exactly like carb....the Tillotsons are a bit fussy about the metering level....that's why I cautioned about setting the lever exactly as Tillotson said to. The lever for the diaphragm needs to be exactly even with the floor of the chamber. I'm betting something isn't right inside that carb.....like Robin said, it's very easy to miss hooking that diaphragm into the lever fork. You have to leave the diaphragm in it's proper place and sort of peel up one edge and peek under there to see if it's hooked correctly. Also make sure the spring for the metering lever is centered on dimple.
Also if I remember correctly the 'sandwich' on the top is;carb/diaphragm/gasket....but on the bottom it's;carb/gasket/diaphragm.
Kevin