Just to update everyone I still have not figured this one out. I did pull the carb back off and checked that the needle is seating properly, it is. Checked that the float is also installed correctly and I installed a new float bowl gasket paying special attention to it when I reassembled. Still runs the same.
To recap the mower will still run perfectly if i restrict the fuel by pinching the fuel line. So i don't believe that i have a cracked piston or valve problem. Again the engine runs with no problems if i restrict the fuel by pinching off the fuel line. Somehow to much fuel is getting through the carb. So i guess it is off to buy a new carb and hope it fixes the problems.
Good thing it is winter and the grass is not growing :smile: