I purchased a carb kit, however after talking with Bobby at Cactus Aviation I believe the problem is the phenolic block. If it warps is can allow an air leak.

Anyway, last night I sanded the phenolic block with 600 wet/dry sandpaper on a piece of glass as well as replaced the innards with the carb kit. Bottom line, it runs excellent once again. whew. My guess is the phenolic block was warped as all the gaskets and diaphragm looked fine.

Thanks for the advice. I'm back flying again!