I agree with our bank yanking friend. The three norvel engines I have owned all came the same way, incredible tight with the piston at TDC. The instructions, which recommend a pretty specific break in period, comment on how the piston and cylinder are specifically chosen at the factory for a tight fit.

I would recommend well lubing the works with whatever fuel you are going to run, leave the head off and turn the works over with your starter for a minute or so. Give the starter a break for a few minutes and then go at it again. The engine should start to loosen up after a couple minutes of turning.

After that follow the break in instructions carefully. If the engine did not come with break in instructions, follow those in the LMH operator's guide under engine operation.

For what it is worth,
Jeff