I guess what I find weird is it was running well at idle? Normally an engine with low compression won’t do that. I can’t help but wonder if the waterpump was blocked or not working? and if so did that blow a head gasket and overheat motor the day you had it out? I don’t know if you pulled the cylinder head to see if it was head gasket was blown and inspect cylinders for scouring and overheating? I would hate to see you do a power head swap then smoke the new power head because the engine isn’t circulating water correctly.
If carb needle valves rattled loose that would make engine run rich not lean so I don’t think that did damage to engine.
Joe
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