A fuel lean condition and an oil lean condition are 2 different things... the oil has nothing to do with the needle setting in what I am talking about. What oil ratio were you using? 25:1, 50:1??

I really don't know... I have never burned up one of these engines before, several Nitro's, but no gassers. I am just offering possibilities that come to mind, a stab in the dark if you will, and I want to know how it happened to for my own knowledge.