RE: What is the problem????
Hoss,
The settings of the needles are irrelevant, for getting the engine to fire...
As I wrote, they become important when the engine is already running.
The [link=http://www3.towerhobbies.com/cgi-bin/wti0001p?&I=LXCP22&P=Z]low-speed needle[/link] in this carburettor, seems to be more elaborate than that of most other carburettors; having two O-rings instead of just one.
Those issues you're experiencing are typical to newbies... You'll eventually get it with experience.