First of all, is the tank building pressure? If it is, the regulator obviously is not passing fuel.
The needle setting is very rich at 2.5 turns, but the engine should operate there. Normal setting is about 1.5 turns open.
If the engine has been stored for a long time the regulator needs to be disassembled and cleaned.
It is also possible that the gaskets have swelled and are blocking the fuel passages between the regulator and carb.
Let me know what you find.
Dave