Don't give up on this engine, it is VERY good. Once you have the needles set properly it will idle for ever, accelerate quickly and run cool. If the engine is spitting fuel out when it is idling the low speed adjustment is not 2 turns out, it has to be a lot more. Is the carb completely closed when you are checking the low speed adjustment as it says in the manual? Depending how it stalls when you increase the throttle will tell you if the high end is lean or rich. If it dies without any increase in rpm it is flooding and the high end is rich. If it sounds "thin" and the rpms increase sharply before it dies the high speed is lean. Maybe you can take it back where you bought it and ask them for help? Where are you in Florida? Hydro-locking of the engine is a sure sign that the low speed needle is to rich.

Chris