I see this was a few years ago now; did you ever do more with that engine? Did you fly it?
I got exactly the same rpm from mine on a 16x10, using 10% nitro. Not sure mine is fully broken in. That was after about 20 minutes of running from brand new. Starting was amazingly easy, running seemed quite smooth. I've mounted it in a Dave Patrick Ultimate 40, but the tank is a little low and the line is long, so poor fuel draw. I'm going to go back into it to try to improve fuel draw.
Jim