RE: What engine is this?
It's a Ryobi 31
You are correct about the needle. One towards the air inlet should have a "H" on it. It is your high speed needle.
One of the fuel nipples is a return line. Without one of those "Bulb" pumps in the return circuit, the nipple will suck air. You need to close it off with a piece of tygon fuel line and a plug.
The fuel nipple next to the needle valves is the return.
The muffler is not for a Ryobi. Bennett should have a muffler to fit? If not try Jag Engines or Carr Precision.