Hi Handysmurf, I read more closly and I see you are flip starting. I cheat and use a starter so I don't know if I can add anything that will help. I am assuming this is a new engine??? Or?? My new Saito's procedure is followed almost by "the book". I start it with the high speed needle valve 4 1/5 to 5 turns out from closed. I won't go into the procedure of leaning out on sucessive runs.... just try to follow the manual, (if it is new and you have one). Check the low speed idle screw on the throttle arm. (brass screw in center). My manual says "as a beginning point" have the FLAT FACE of this screw flush with the surface of the throttle arm. I would say to put it flush as you can then turn it in 1/4 turn. You won't be messing with this anymore... till you finish the high speed setting and it is pretty well run in. A HINT my LHS and others have told me. I put an old white towel under that BREATHER TUBE you were asking about. You will notice that the oil dripping out at the first run is gray. That is metal residue from the new engine. After the engine is run several times, at a total of about 45 minutes to 1 hour, this oil should be fairly clear now. (no more metal rubbing off). You should be able to go onto the low speed idle now. A VERY IMPORTANT SETTING. No matter if your engine is new or not... you should read this post on setting a carb. It is very good !!!
http://www.********.net/forums/showt...=&threadid=454
I have 3 Saitos and just love them. Like I said, I do use a starter. My average setting on the HIGH speed needle valve, AFTER BREAK IN, goes from 2 1/2 +, to about 3 turns out from closed. I like to run mine a little rich. I know I could close it a little more, but I like the smoke trail

PS. Do you have a tach?? If you don't, I highly reccomend you buy or borrow one. I have a .56 Saito that I did not have to touch the low speed adjustment since its maiden flight last spring. (and very little messing with the high speed setting!!!)
GOOD LUCK..lownslo