Well i finally got this basket case assembled so I can diagnose it.
Shes surging bad, but it's weird, pulling the choke has very little affect on the surge, it will surge up until get to almost full choke, then it will start blowing black smoke and running rich. There's no sweet spot to stop the surge, so that makes me think , maybe a governor or load issue, for the heck of it I disconnected the wires coming from the generator head and restarted it, issue persisted.
I also removed the governor link and did the throttle by hand, any less than 1/2 throttle and no choke, she dies...
This problem has occured in the carburetor the customer installed, one I installed with new gaskets.
I'm thinking of opening the carb up again and enlarging the jets to see if that gives any improvement, but on the other hand, I don't think it will since the choke never gets rid of the surge, it goes from surging to chugging rich with no in between.
Spark Plug looks like a lean burn.