I would say you have it pretty close, run it as is until the engine is completely broken in, the oily residue is more than likely due to the rings having not "set" yet, this will take quite a few more hours of steady work.
Re-check the valve lash after around 40 hours on the tach, they will all tend to change as the valves begine to "settle in", set them up a bit loose, and adjust only when warm.
The black sooty deposits were from running too rich initally, hot cocoa is close to plug color, to light tan, white is too lean, black is too rich, keep an eye on your rain cap on the muffler, should be slightly black from exhaust when working.
Settle for a little black smoke when pulling hard, not much, just a little, better to be on the rich side than on the lean side.
Take it out & work it, it will finally settle down, & you will find the correct balance on carb settings. Check the plugs around once a week, & go from there.
This post was edited by rhtx55 at 17:26:33 02/07/12 3 times.
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