RE: Need help identifying this engine
It is indeed a Skyward .40 made by Picco and distributed by Udisco in Canada. Although slightly detuned from the Picco .40 it is a great and powerful engine. I have one in a Tsunami .40 and it tears holes in the sky. Mine does not have the inflight adjustment but it looks as if you can remove it and screw the needle into the carb from the pictures.
There is a picture on this link fourth one down
[link]http://www.rcuniverse.com/forum/m_7951975/mpage_16/key_/tm.htm[/link]
Max