Well, there IS something wrong with the engine. I'm the instructor and I can't seem to get the thing to idle after 5+ mins of running. After some more frustration, we took the .40 LA off the Superstar and replaced it with my OS .46AX (3 blade Graupner prop) and the thing flew like a champ. After we had the engine off the plane, I told Chad to take the engine to the shop (Hobbytown USA) and see if they could shed some light on the situation. Maybe they could get the idle issue worked out. It sounds like this did go badly. I know that these planes come with warranties and such, so if we really wanted to be jerks, we could just box the whole thing back up and say we want a new one.
I've really got to tell you guys, this engine is absolutely horrible. I'm not saying ALL .40LAs are bad, but man this one has got issues. I own engines in the following sizes: .049, .15, .25, .46, .75, 18CC Gas, and this little devil has me stumped.