I have a Tower Hobbies .46 with 3 hours on it. Started sputtering at 3/4 and 1/4 throttle. The idle adjustment in the manual states: the space between needles should be about 1/8 in. or .125. My plane spit out fuel until the space is down to .01.
Do I have a problem. It idles fine and runs ok now. Whats the deal?

If it runs great where it is now, then it's fine. Leave it.

If it richens up even more, you've got a problem...For now, I think it's OK.

If it works, don't fix it.

If problem arise again, post in the "Engines" forum. There are some real experts that hang out there.

Chances are, you'll have to change it again when you put more time on it.

Many 2-strokes spit out a little raw fuel here and there, depending on how things are set. It's not a problem by itself. If the engine runs well at high power, idles well, and transitions well, then you are good to go, don't sweat anything else.

A reliable idle and smooth transition are the last things to work right as an engine goes though break-in. Many require more than 3hrs of runtime to be fully broken in.