What do you mean the valve not closing all the way?
did you make sure the TDC when you install the cam gear?

How is the compression?
Have you tried disassembling the engine (pulling out the crankshaft) to clean?
If the fuel is coming out of the carb while running, how about when it is not running? throttle barrel closed & open etc. If the engine is mounted inverted, the fuel spray is possible, but not dripping out of carb.

If the O-rings are not sealing very well, you can check it by submerging the engine in a small container with fuel in it. Make sure to drain out any fuel inside the engine before doing this. plugging the exhaust & carb with something that can not be sucked in. I would put something like food wrap (saran wrap) with small rubber band.

When I removed my cam gear, I disassemble entirely to clean any small debris out of the engine even used a tooth brush to clean the crankshaft gear teeth. Check the piston, ring, & liner for any scratches.

By the way, where do you fly in Joplin, MO?

I live in Pittsburg, KS.

IP