RE: Needle Valve settings...
Most glow engines will start at similar needle settings. All the OS engines I have (all recent vintages) will start rich at 2 turns out on the main needle. For now don't adjust the idle needle.
As others have stated, start with known good fuel and a known good plug. New fuel lines inside and outside the tank are also a good plan. A .40 should probably be run in with a 10x6 prop.
Fill the tank, and hook up the fuel lines to the engine. Open the high speed needle about 2 turns from gently closed. Open the throttle full. Be sure no glow starter is connected yet. With a thumb over the carb, turn the prop over to draw fuel to the carb. Once fuel has reached the carb, turn the prop 2 or 3 more times to prime the engine. Remove your thumb from the carb and flip the prop briskly a half dozen times to move the fuel up into the cylinder.
Close the throttle to about 1/4 open or less. Now connect the glow starter. Use your electric starter or a chicken stick to start the engine. It should start in a few flips and begin running. If it starts backwards, just close the throttle and start again at the beginning of this paragraph.
Once the engine starts, move behind it (out of harms way!) and slowly (take 2-3 seconds) advance the throttle to wide open. The engine is probably running a bit rough now, in a "4 stroke" mode. Sounds a bit slow and labouring, this is good for just now. Disconnect the glow driver. Leaving the throttle wide open, slowly close the high speed needle. The engine speed will increase for a while, smoothing out into a pure 2-stroke rythme, and then plateau. If you go too far, it will begin to quit, back up a bit quickly! When you find the plateau (where the RPM's peak), open the high speed needle a click or 2 until the engine just slows a hair from peak rpm's. This is where it should be adjusted for flying.
Now close the throttle to an idling RPM. Should idle at less than 3000rpm reliably for minutes on end. If the idle slowly slows, tending towards quitting, but picks up if you pinch the fuel line a few seconds, you'll need to close the idle needle a bit (assuming a 2 needle carb.... If it's an air bleed carb, you'll open the air bleed a bit....). If the engine quits immediately when the fuel line is pinched, it's idling too lean. Ideally, you should be able to idle a minute or so, and when you pinch the fuel line, the rpms should pick up for a second or 2 and then the engine dies. If this is the case, your engine should be good now, with a good top end, reliable idle and reasonably clean transition from idle to giv'er.
Quit on throttle up = lean idle
Stumble on throttle up = rich idle
Good luck!
J