I've rebuilt the carb, and ran the engine still on 40:1 mix... While I did not have a chance to test it in the air, on the ground it ran great - first thing I noticed was how easy it was to start - it popped after just 3 flips and than it fired on the second flip - it used to take minimum of 10 to 12 flips on the first start of the day before... Transition seems more crisp, idle smoother... It seems to run great now, but the real test will be in the air....
Thanks all for help...