Sorry I took so long to update this but I received and installed the carb kit and ended up with the same results. Then I adjusted both adjustment screws, testing each setting as before with the same results. The only thing that I did not replace was the metal seat (needle and seat). So after the above experimentation I went back in to replace it. The instructions said to tap the old seat, thread a screw into it and pull it out. I could not get it to budge. I hadn't dinged up the seat, just the sides when I threaded it and the needle still moves freely so I put it back together and reinstalled it and ended up with the same results. And since you're wondering, yes, I am positive that the fuel pump is put together properly and now has all new diaphrams, gaskets, springs, etc. I have tried adjusting the tang on the float that pushes the needle up into the seat slightly both ways, again with the same results. They won't sell just the upper carb body, they say you have to buy the whole carb at $155 bucks! I don't think so... Anyone have any better ideas on how to remove the old seat?
Still scratching my head on this one!