dditch

Fellas,
Having a problem getting the engine to run past 1/3-1/2 throttle. It just dies.

I'm posting here in this forum 'cause I know lots of Pattern flyers use (or at least used to) fly the YS 120.
I got this engine back in 1995 cause it was the same engine I had in my pattern plane.
The engine has been mothballed since 1999 and I took it out and rebuilt it w/ the help of a friend.
The friend helped me pull the crankshaft and bearings out and I put new bearings, o-rings and gaskets in.
I cleane up the valves and set the spacing.
I also set the timing of the cam by lining the mark on the drive washer to the body and the dimple of the cam upwards.
Here is the central hobbies exploded parts diagram I am referencing:
[link=http://www.centralhobbies.com/Engines/parts/YS120NCEX.html]YS 120 NC exploded parts diagram[/link]

When first starting it up, fuel was leaking out of the regulator. Pulled it apart and I think the diaphram was not seated in right so I turned the regulator screw out about 5 turns from where it was so the diaphram would sit in there when putting it back in. Turned the regulator screw back in 5 turns. I took pics of how I placed the diaphram when installing (gasket goes on case side, clear diaphram goes on regulator side in the recess).
My initial problem was that fuel was not comming into the carb. I had to turn the regulator screw out a couple turns, then all the sudden, fuel would move. It started to move out of the regulator to the carb as I backe out the regulator screw 2-3 turns from it's original position.
Then it started up and would sound GREAT at about 1/4 throttle. It was not really holding an idle and ANY time we went past 1/3-1/2 throttle, it died.
We tried 1 1/2, 2, 2 1/2 and 3 turns out. I sort of recall I ran it at about 1 1/2 turns out, (not really sure). Anything past 3 turns and I can see the O ring on the needle valve Needle socket.

My tank is holding pressure. After letting it sit even 10 minutes at the end, when I accidently unplugged the clunk side of the refueling tube, fuel spewed out to let me know it was holding pressure. I think I have all the fuel lines all hooked up right (see photos).

I took pics showing the order that I place the gaskets as well as the plumbing of the fuel lines.

One thing I'm not clear on by the exploded parts diagram on the central hobbies website. # 73 the Regulator Balast. I don't see that on my engine.
Either my buddy took it off and lost it, It was removed and lost back in 1998 the first time it was reworked or it never had it.

I did nothing to clear out the tubes that go through the regulator body #46 and I'm wonding if I should pull that apart and maybe clean any gunk I find on it. Should I take that apart and then blow compressed air though the holse to clear it out or soak it in something?

I also need some sort of default or adjustment procedure for the #47 regulator adjusting screw. I've never had to touch it before. Both the initial use of the engine from 1995-1998 and after the first rebuild, I never touched that screw and the engine ran flawlessly.

I ran it today with 15% nitro 20% castor-synthetic blend Byron fuel.
If any other info or pics will help, let me know.
thx for any help

-David