To all the people who have been giving me suggestions.
I finally got a break in the weather here in Wisconsin and decided to give the 120 a try. I did the following as you all suggested.
I checked the camshaft timing and it was ok.
I checked the back plate to make sure that it was installed correctly and all was ok.
I reset the needle valve to full two turns from seated.
I installed sandpaper on the prop washers to help grip the wooden prop better.
I made sure the regulator was set flush to the housing, rechecked my valve adjustment, all was ok.
I put clamps on all the fuel lines at every connection to make sure the engine was not sucking air.
I checked the check valve and eveything was ok.
I rechecked all the lines per instructions to make sure I didnt hook up a fuel line wrong.

Turned the engine over by hand ten to fifteen times with the throttle wide open until I saw fuel going toward the carberator throught the fuel line.
Released the vent on the fuel tank to make sure it recieved some pressure and it did.
Cranked the engine over again by hand a few times, put a few drops of fuel in the carborator, hooked up my glow driver and proceded to try and start the engine by hand, after about 10 to 15 tries I grabbed my electric starter and the engine started firing.
With the glow plug attatched the engine was running but it was surging, picking up in rpm and slowing down in rpm over and over again.
Shut the engine off and backed the regulator skrew out one half turn.
Restarted the engine and I had no more surging and the engine ran smooth and sounded real nice.
After I let it warm up I went to advance the throttle and noticed a distinct sound, it was not a pinging or a clunk but somewhere in-between.
The noise started getting more frequent, then one loud one and the engine stopped abruptly and the prop spun loose. I know now that the reason the prop is coming loose is becasue as tandy suggested the motor is stopping abruptly and the prop is spinning itself loose.
Understand from the time the noise first started to the last noise was a matter of maybe three seconds.
Inspected the engine and all is ok. Started it again and the same thing happened.
Once again your suggestions are appreciated.