No. Wheel in air=inaccurate test. If you back the idle screw all the way out, does the carb;s throttle arm ACTUALLY rest all the way back and touch, or does it appear to be "floating"?
It really tries to speed off then. I turned the engine off and then pulled the rope and my driven wheel spun with the engine. I guess my clutch is engaged and stuck there? How would I remedy this? I've already cleaned the clutch(did it prior to hooking up the engine).
Ahh- that's a hint- clutch engaged with engine off. Try lubricating the clutch;s bronze bushing with a few drops of engine oil. If that doesn't free it up, make sure the springs and shoes are sitting right. If that don't do it, it's probably shot.
That's one issue. Then, we'll figure out what's up with the engine.
What would the springs and shoes sitting right look like? It looks symmetrical to me. Is the bushing you're talking about located on the inside of where the outside sprocket part slides onto the engine's shaft?
If those questions were a bit too much I can grab some pictures...
I bypassed the governor on one of those engines last weekend and had the same problem. The plate that all of the cables and stuff mounts to was bent down and keeping the throttle from closing against the idle screw. Did you reach in and push against it to make sure it's seating fully against the screw?
Regarding the springs and shoes, yes- grab a pic. As far as the bushing- it's a brass-coloured sleeve that allows the outer drum to spin freely on the inner sleeve. Should be easy to spot.
EDIT DaiSan- I thought that too, which is why several posts up I asked if it was resting all the way back, or floating.
It looks to me like your bushing has seen better days, and is not allowing your clutch to rotate freely on the inner sleeve. I would suggest getting another clutch if you can.