If I understand this correctly here is what you need to do

Adjust the low speed needle, 2 turns out, the top of the regulator screw should be flush with the housing or 1mm or 2mm above the housing, set the high speed neede 2 turns out.

It will be rich but will run good.

Remember that the low speed needle is an air bleed type so it has the opposite effect as most other medium to large glow engines. Turning it in (clockwise) richens it, turning it out, (counterclockwise) leans it

If you are having regulator pressure problems try the following

Make sure you have no air leaks
Make sure you have the check valve in correctly
Are you pluging both the fill line and vent lines before starting the engine

There may be a problem with the regulator itself, but usually these engines are pretty bullet proof