The high idle issue sounds like the governor to carb throttle linkage needs adjustment. To adjust:
- Remove the cover at the top of the governor riser (the slanted cover with the breather tube sticking out of it).
- Remove the cotter from the pivot pin and remove the pin.
- Set the throttle handle wide open.
- Now turn the carb throttle shaft as far clockwise as it will go, lift the governor connecting rod as far as it will go and try to re-insert the pivot pin.
- If the pin does not slide in easily, loosen the locknut on the connecting rod block and adjust it up or down as required until the pin slides in easily.
- Finally tighten the locknut, replace the cotter pin and the riser cover.
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A few degrees of "dither" around the timing mark is pretty much normal for this engine. It's caused by the combined lash of the 5 gears between the crankshaft and the distributor shaft. As long as the engine pulls well under load I'd not worry about it.
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