Look at the attached diagram and it should explain how the lines should be connected. But brief, here it is:
The line with the clunk is the fuel pick up and should be connected to the fuel input on the carburetor
The line that points the to top of the tank is the vent/pressure line and should be connected to the pressure nipple on the muffler
The line that points to the bottom of the tank is the fill/drain line and should be plugged tightely when the plane is running.

Hope this helps

Ken
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The diagram is a great example. As far as I can tell, All the lines are pointed correctly. I did put all new lines on the plane to no avail. Could there be any leaks from the engine that could case this? Crank Shaft or the bottom of the engine area.

I do have a new fuel tank with lines already in them and may use it and see how it works.

I also took the engine to the hobby shop and they said it had great compression and the piston looked fine.