RE: Fox 40cc-Keeps stalling in air
What brand is the CJ-7 plug, hope it's not one of the current cheapies. It's a good practice to use one of the more popular brands like NGK, Champion or Denso. The fact that your engine only acts up in the air and has become difficult to start really leads me to think that it could be your mixture that needs some adjusting. Try running a bit richer just for a test and see what happens.
Karol