Please help.

I have a few questions that need answering

1) - When I pull the pull start, I am getting really only one good click. After every few pulls it is getting 3-4 like it usually should (like it's turing over sound)

2) - Even when I flood it, it is still fairly easy to pull the string. Does this mean I am losing compression? The engine is shot?

3) - I am seeing a lot of smoke coming from not just the muffler but the edges of the egine (I guess maybe at the head pipe, and maybe in other places where the pieces of the crankcase come together via screws. IS this normal to have a decent amount of spray off all around the engine?

4) - I am getting air in the fuel line. I guess it could either be from the primer or from the fuel filter I have on or from the hose. The hose I got was slightly looser than the original - but the LHS said the fuel line is all the same diameter. Is that true or is there 1/10 and 1/8th sizes?

I guess thats it for now.

Thanks