Hi everyone, just thought I'd provide a little closure to this thread.

After hours of tinkering with the engine and carb, I caved in and got a new EI unit shipped to me. Just received it last week and it did the trick. Guess I learnt that just because the EI produces a spark doesn't mean that it's working ok. The engine now starts and runs as good as before. Going to fly it tommorrow, but for what its worth, the SPE 26 seems a decent engine. A little low on power perhaps, but I think you just can't beat the price!

One little note for those in warmer climates. The recommended (in previous posts) 1.5 turns on both needles were too lean for my conditions - the engine would pop on prime but wouldn't run or run with difficulty. Showed similar signs as a glow engine with the needles too lean. I started with 3 turns out and leaned in from there. Tuning seems pretty easy and I'm getting a clean transition and decent idle. Will know for sure once its airbourne.

Thanks again for all who took the time to try and help me out.