Some progress! Some other questions. Acting on the forum advice I got into this again and had some good news. I took everything apart that I have had apart before. I took off the muffler and got down to the breather to examine but no visible problems. I took the governor plate and magneto off to get to the intake tube and removed it, no visible problems. I did NOT disassemble the carb again. I carefully reassembled everything; the engine started on fluid for a few seconds and smoked a bunch. I did it again and it actually stayed running, smoked for a minute then the smoke cleared. I took it off choke and it still ran. It starts first pull every time now, and runs good but with a surge.
1) I did replace the Oring behind the carb. It looked slightly flattened but I don't think that was it.
2) It's "possible" I had the carb slightly cocked when I installed it originally. I paid more attention this time with better lighting.
3) I had taken the pump off and reattached the engine to the frame while troubleshooting. It was a hassle to hook the hoses up everytime I did something and wanted to try the engine. I will replace the pump tomorrow but I was wondering if the "surging" would have anything to do with the engine having no load?
4) If the surging continues after reinstalling the pump, where should I look? I did see a Youtube where Taryl fixed some surging on a riding mower by increasing the size of the main jet. Since I have a "China" carb on it now I wonder if this could be an issue. They sell these carbs to cover many different applications and it seems like the main jet size wouldn't be the same for all uses.
Thanks again for everyone sharing their knowledge on this forum!