It may sound stupid but are you sure you're turning the needles the right direction to lean it out?

It just sounds like it's very very rich, too rich to run actually. This would explain why it started on almost the first pull, because it didn't have much fuel in the engine yet. Then it stalled as more fuel came in and eventually flooded making it impossible to turn over. You did the right thing by removing the glow plug to clear out any fuel in the combustion chamber.

My advice would be first to set both needles back to the factory position. This will still be rich but it's a starting point and at least then we know in which direction we are going with this. Once you get that done, try to fire it up. Then proceed to lean it out until it's performing well by turning the high speed needle clockwise a 1/8th of a turn at a time or less. Do the same with the low speed needle, you'll notice the effect of this needle off the line in acceleration. Everything else is the high speed needle.

If you have a temp gauge that's great. If not you can get by with the water drop test, and in both cases watch for the trail of thick blue smoke telling you the engine is getting the proper fuel/oil content. If at any time you don't see this smoke trail or hear the RPM's get very high and the engine makes a screaming sound, turn it off as it's too lean. I suspect this is the problem though, it's just very rich.