Hey thanks for the helpful suggestions, Rivets and Sgkent. I spent the past couple of days working on this and think I finally resolved the carb, electrical, and governor adjustment issues.
As usual, I became impatient with trying to clean the tiny orifices of the original carb carb and installed the $10 ebay replacement I had previously ordered. I was disappointed that the new carb did not immediately solve the starting problem and went on to check out the ignition spark which was very difficult to see while pulling the recoil cord. With the spark plug out and my wife easily managing the compressionless recoil cord, I was relieved to see at least a weak little yellow spark and was encouraged enough to spend $4 on a new spark plug. I then followed the service manual guide for setting/adjustment of the governor arm, but somehow ended up with what seemed like an over-revving engine. That was when I sent in my original forum post.
Going back to the service manual and other internet sources in hindsight I think I misunderstood the governor arm adjustment instructions, or maybe was looking at the adjustment sequence for a different engine. So I went back to the basics of bending the butterfly spring tab and resetting the governor arm as shown in the service manual. By making incrementally small adjustments to the metal spring tab and governor arm, I was eventually able to get the engine to start and run at what seems to be a safer speed. Not having a tachometer I could only do this by ear. The adjustment rules I used were as follows:
- Bendable spring tab: Forward=faster / Rearward=slower
- Governor arm: Untighten screw / set arm vertical / governor plate horizontal; test; adjust plate clockwise (rearward=RPM+); very sensitive
- Butterfly screw: CCW opens valve (RPM+); CW closes valve (RPM-)
And by the way, if anyone is undertaking a carb replacement on this model engine, remember to remove the entire carb assembly from where the intake manifold joins the engine block. If you remove only the carb from where it joins the intake manifold (and don't have skinny 6" fingers) you will have a devil of a time replacing the inside carb nut. I had forgotten about this and spent an extra hour getting the inside nut started.
The attached photos of the bendable spring tab and governor arm show the alignments which seem to work for me. Thanks again for taking the time to respond to my request for help.