if there is one thing i have learned - it is that every engine will start. there are only four things that make a nitro engine run:

• Fuel
• Air
• compression
• combustion

All of these things must be in effect to start. So lets check them out.

Fuel: Can you see the fuel going from the line into the carb? yes you can, as u mentioned that there was fuel in the chamber when it was flooded.
Air: Is the carb opening, is the airfilter clean? yes. u already said it was.
Compression: Is there compression? Its a new engine, so this should be okay, but u can check it by manually turning the flywheel with your thumb, it should be almost impossible to do.
Combustion: Have you checked the glow plug on the igniter while it is out of the car, and made sure it glows bright? U dont mention this, so try it first if u havnt.
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If all these things check out than it can only be one thing: You need to adjust the mixture of the fuel and air. It sounds to me the way u described it that you have it too rich, of course if u are breaking it in that is how u want it. set the HSN about 3/4 of turn lean, see if it starts, if it does then richen it back up once it is running. also - a great way to clear out that fuel that got in there is to pull the plug, and yank on the starter cord about 20 times, or use a box if u have one. hope this huge post helps.