Now - a problem of my own, or really a problem with Kevin's (2 broke2ride) 7-10.
I decided to give it one last attempt, stripped it down to the short block and rechecked both pressure and vacuum. There is a slight pressure leak through the compression release, and it was still burping out through the automatic oil pump. I replaced the automatic oil pump with a used one from the attic and that cured the pressure leak there so there was just a blip, blip, blip of bubbles coming from the vent port of the compression release. I pumped the vacuum up to 20" Hg (out of the water now just in case you were wondering...) and it would very slowly bleed down, less than 1" per minute. I did put some heavy oil around the seals and it didn't change at all. I am not sure but I suspect the vacuum leak may have been through the compression release port as well. I had replaced both crankshaft seals when I worked on it last time and I believe they are still quite effective.
I didn't want to take any chances so I replaced both gaskets on either side of each of the insulators between the cylinder and the fuel tank/airbox as well as between the airbox and the carburetor and even changed out the insulators just in case one had a crack or chip that I could not detect. I went so far as to scrape the mounting surfaces on the block and the air box to insure there were no irregularities affecting the ability of the gaskets to seal.
The saw will start, run up at full throttle, but will not operate with the throttle at idle position. I fired up my 7-10 to make sure all was O.K. then switched the carburetor into Kevin's. The only way to get it to idle was to run the idle speed screw all the way in (mine had the idle speed control in the carburetor) and lean it was down. I don't think it was actually running on the idle circuit but the throttle is open far enough to pull through the main jet as I could turn the idle adjust screw all the way in with either carburetor and the saw keeps running, until it dies...then I had to choke it one pull and it would restart and repeat the scenario. As the saw continued to warm up the idle became even more erratic, seeming to lean out and speed up, then appeared to get rich and flood out
On the previous attempt I did install new points, a different condenser, and even changed the flywheel as Poge had suggested with no effect whatsoever. When I tested it Saturday morning it would certainly run at full throttle and cut pretty well, but would never operate reliably at idle.
The only thing I have not changed is the piston itself. Looking at the IPL's I see than serial numbers with the 10 prefix had a different part number (69030 as opposed to 85239 in all the other late model 70 cc saws) which is a thick ring piston.
Kevin - did the piston you changed out look like the one on the left or the one on the right???
Makes me wonder if the porting is different based on the piston and we have the wrong piston in yours?
Mark