I have the carb apart right now looking at the lever. I'm trying to determine the height for the pump diaphragm center button contact. Seems like anything above level with the inside base height and it floods out at an idle, wetting the plug. If I set it at exact level it won't pump a darned drop. Maybe there is a problem with the metering needle or seat?
I'll pull the needle and have a look. Everything is new as I mentioned, never been mounted or had gas in it till now. I have one on a Ryobi 31cc that seems to work perfect, and it also was brand new like the problem carb. Needle settings on the one that is working are as you said, 1 1/2 low and 1 3/4 high and lever level with base. Kinda stumped on this one though. Actually, I pulled off the fuel line from the carb, dried the plug, and a few flips it'll start and run till reservoir is dry. Kinda tells me it is way too rich. The bore size is the same as the Walbro the engine came with, so it should be fine if I get this sorted out.

John