I always hear to break them in like you were going to fly them, but that carries a couple of provisos. For a 2 stroke like yours, start out with the needle about 2-21/2 turns out; it should start and run but will be rich. advance the throttle with the glow charger still attached until you get max rpm, then turn the needle in (clockwise) until you get peak rpm (best measured with a tachometer) and then back off til the rpm drops 1000-2000 rpm. back off the throttle to about half and let it run for a minute or two, and then drop to just above idle, then increase speed again. Vary the engine speed throughout the first tank of fuel (8-10 oz), but don't stay at full throttle more than 10-15 sec. at a time. Use the prop you will be flying with (dia./pitch). You can touch the head or muffler(careful of the prop!) to get a rough estimate of temp; it should be uncomfortable to the point of not being able to keep your finger there, but not blistering. A couple of tankfuls like that and you should be set. As far as fuel type goes, stay with 10-15% nitro and 18-20% oil. It's convenient to mount the engine on your plane to break it in, but it will be messy. Making a test stand is not difficult and allows a bit more freedom to move around the engine, and is less messy.