Larry, your problem was you had that sucker peaked and it only had like 6-8 runs on it....hence why it was getting lean and hot. The settings were correct, it was just being run too hard too soon. backed it off, cooled it off, a couple gallons and back to peak....voila, the monster woke up
I probably run my DZ a little more rich than most, with a richer bottom end and a fairly peaked top end backed off 2-300 rpm on the tach after break in. So far this has yeilded a LOT of reliable runs and the only casualties ever being an occasional plug in the heat of summer, and those pesky O rings on the muffler. That's it, fuel it up, turn the motor and go fly....repeatedly.
-M