Sounds like you're on the right track with the magneto.
I'd check what the others have mentioned here, but if that doesn't help, I'd take a closer look at that carb.
I haven't been on this site very long, but I still wish I had a dollar for every time I read here that somebody had a carb professionally rebuilt, and is now having trouble.
The way the engine is operating, it sounds like it's choked. Make sure your choke linkage is attached and working properly.
Dripping gas means you're floats are not doing their job. So if you continue having trouble, I'd take a look in there.
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