Just reread the entire thread and a few things popped out. First you are over thinking many things in your last post. I never seen any of those possibilities. I'm going to sound like a smart a-/(&, but please bear with me. Remember I am not there to see, hear or feel your problem. First, are you sure that you torqued the flywheel nut correctly. If it was a bit loose the key may have sheared again. If you feel you did it properly, do not got back and check. Second, I still think it may be a carb problem, so I would like you to try this procedure in adjusting the carb. If the carb is allowing too much fuel in at startup, a kick back could result.
Adjusting a carb
Ok, the first thing I would suggest is to reset the armature air gap with the single thickness of a business card, unless you are sure you have a gap of .010 inches. *I don't normally recommend doing it this way, but in your case it may be best. *Second, this is the procedure I always taught my students to adjust a carb with two fuel controlling needles.
1. *Start the engine and move the throttle control to top speed.
2. *Adjust the high speed needle (this is the one under the float bowl) clockwise very slowly until the engine starts * * *
** * to bog down.
3. *Back the needle out 1/8 turn, the engine should now run smoothly.
4. *Now move the throttle control down to idle. *If the engine stalls out turn the idle speed screw in one full turn,
** * restart the engine and bring the throttle control down to idle. *If the engine is running to fast, turn the speed*
** * screw slowly out until the engine seem to want to die and then in 1/8 turn.
5. *Now with the engine running, adjust the idle needle out until the either gains in RPM's or starts to bog down. *If
** * the engine gains in RPM's, continue to adjust out until the engine starts to bog down. *At this time turn the*
** * screw in 1/4 turn. *Now the engine may be running to fast, so turn the idle speed screw out until you get an*
** * RPM you like.
6. *Now you must repeat step 5. *If the engine bogs down right away turn idle needle back in to your starting point*
** * and go to step 7. *If it speeds up, repeat step 5 again.
7. *Turn idle needle in until the engine bogs down and then out 1/8 turn.
8. *Now the engine should run smoothly at all speeds.
9. *To check, set the engine to idle, then quickly push the throttle control tohigh speed. *If it dogs and does not*
** * come to speed, open the idle needle 1/8 turn and repeat.
10. Set to go.
There are 2 *reasons I have it done this way is, first the high speed needle controls the fuel going to the low speed circuit and second is that the idle needle controls how much fuel is used when going from idle to high speed. *You should also review the section in the manual I posted before starting this procedure.
Now if this does not solve the problem we will have to look at the valves. If the exhaust valve is sticking or not seating properly, hot gases may be igniting fresh fuel entering the cylinder causing kickback. This will mean that the head will need to be removed, so pickup a new head gasket before disaasembly. I don't know how far into this you want to go, just giving my thoughts. Will trade snow for our cold in payment for this advise. Let us know if you need more help.