Welcome Joe. I had one of those lil reds running at one time, it was the first top handle saw I owned and the first saw I ever took apart to rebuild. Good little runner, still have the pieces of it in a box somewhere. Eventually, oil started coming out of the exhaust. With the price of top-handles these days, maybe I should dig it out and try to fix it.
I ran lil red this past weekend at our cabin. Lots of balsams dying here in Northern MN and winds are finishing them off. They are densely branched with small-diameter branches. Lil red ran and cut well. It was perfect for limbing those nuisance branches before we bucked the trunks with the 49SP. I was picking up some generic parts for the lil red project at a local hardware store and the guy in front of me at checkout was paying over $300 for a nice, new top-handled Stihl. I kept this thought to myself -- I've got about $40 into lil red and it will likely hold its own on tasks that the Stihl is specified for. If you get into reviving your lil red and need contacts for old Homelite XL parts I'll share a couple of good-folk sources with you.