I would start with adjusting the valve lash, and a valve train inspection. Look for broken valve springs, bent pushrods, watch that all the valves are opening and closing.
Then run a compression test. Don't worry so much about the amount of compression, but look for differences between cylinders. Ideally they need to be within about 10% of each other.
When you had the carb apart, did you check the float for buoyancy? Did you set the float level? Does the carb drip gas if the fuel valve is left on? Did you adjust the main jet? How is the fuel supply? If the tank is contaminated or flaking rust, you will have ongoing carb problems. It needs a clean, reliable source of fuel to function properly. Any of these things can lead to rich running, but before blaming or adjusting the carb, everything else must be in order.
I'm not aware of any engine that has drain holes in the exhaust manifold. Makes me wonder if possibly the manifold is burned out. Some are designed as a one piece intake and exhaust casting. On those, the exhaust can burn through internally and enter the intake side, which causes them to run terribly, similar to a vacuum leak but worse!
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Today's Featured Article - Talk of the Town: How to Remove a Broken Bolt - by Staff. Another neat discussion from the Tractor Talk Discussion Forum. The discussion started out with the following post: "I have an aluminum steering gear housing with a bolt broken off in it. The bolt is about a 3/8" x 1 1/2" bolt. I've already drilled the center of the bolt out with about 7/64" drill bit the entire length of the bolt. Only one end of the bolt is visible. I tried to use an easy out but it wasn't budging and I didn't want t
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