You're definitely making progress. I suggest one thing at a time. The tractor runs, but runs rich. So you know you have spark, compression, and fuel--just too much fuel. I would not adjust the timing until you have that carburetor working properly. As another poster mentioned here, the float is possibly getting hung up or the needle valve is not seating properly. I do not recall if the needle valve seat is replaceable on these but if it is, there is a gasket around it and that seat can be unscrewed and that gasket replaced--another source of leakage.
You should be able to remove the carburetor and test it on the bench with a fuel line hooked up above it allowing fuel to flow in by gravity. Or you can use air--just a few psi. The air should stop flowing when turning the carb over, which should allow the needle valve to seat.
*After* you get that carb leakage fixed, you should re-install everything, and then use a screwdriver to gently "seat" both the main jest screw and the idle air screw. Then back out the main jet screw 2 1/2 turns. The idle air screw should be backed out 1 1/2 turns. Adjust up or down from there for best operation. There are many guides to tuning a carburetor on the internet, but in general, get the engine warm at high throttle, then tighten the main screw until it starts to miss, then back out until it is rich, and go for the mid-point between these. The idle air screw is the same except that you should be at low idle and out=lean, so the turning is reversed. You mentioned you were at 6800 feet, so I defer to anyone with high-altitude experience to take it from there. You'll probably end up tuning the carburetor "by ear" for smoothest operation.
While there is no fuel in the system, it may be worth-while to completely unscrew the adjustment screws and look at them. I have seen where the end gets pitted or rusted away and they will not seat or adjust anything. If that happened on the main jet it would also help explain the exceptional richness.
One last thought and not to insult you, but also verify that the choke is not on. The air filter also needs to be cleaned as well. A clogged air filter or stuck choke will also cause richness.
Good luck. You're doing all the right things. Dave
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