that 165 seems high considering that engine should only put out about 110-120 max due to its compression ratio. 70-90 would be more realistic for a compression release engine. You said you adjusted the float height. Is the float sitting level with the carb body when the carb is upside down, or if it has the spring loaded float valve level with carb body when needle is seated when the carb is turned sideways.
Also if the new plugs where sitting in gas due to the leaking carb, the plugs could be fuel shorted and could be now faulty. So that may be something to consider.