I'll definitely update once I find the cause. I just haven't had time to mess with it yet. I'll probably get the carb kit next week if I can find one local, of not I'll order it and go from there. I did pull the carb off and look at the gaskets around the intake, they look fine to me. I'll put them back on with some sealer if I can't find new ones.

Also, this is a reed induction engine. Could the reed cause this behavior? I don't know how many hours is on this engine, but I do know that someone had been in it before I got the saw second hand. There was silicone on the gasket where the case splits. I don't even know if I can find the reed for it though...