RE: A couple questions.
It's possible that the engine is leaking out of the front, which would give you fuel in the prop. If that's the case you'll likely never get it tuned right until the leak is fixed. Put a big straw in the carb with it open and blow through it with the air bleed closed and the piston at bottom. If air comes out of the engine anywhere besides the muffler, you'll have to fix that before doing anything else.