Ok everybody: the engine check was done with the tank out of the fuse--no leaks there.

I tried using smaller tubing (which seems to have helped) AND I bought and replaced the tiny O ring around the needle valve. Still seems to be some leaks ORIGINATING from the needle valve area (b/c bubbles only seen in the line to the carb).

If I am still rich, has anyone seen this with the needle vavle open ONLY ONE TURN? I did pinch the line and the rpms did go up, but I got worried, thinking how can I be rich if only open ONE turn?

Also, are there supposed to be two (or one) O-rings on the needle valve? If only one, then I've found the problem.