Dave, Running in my new 1.60DZ today. I notice today at idle the fuel line from the pump to the engine has no bubbles in it. The line from the carb body to the injector is full of bubbles, is that normal?

Check to see that the check valve in that line is screwed together tightly. It is also possible that the throttle barrel seal is leaking and allowing air to get into that line.

Is the engine running OK at full throttle? or is it trying to go lean? If it's running ok don't worry about it.

Engine seems to be running fine at full power. It did quit once while running at a prolonged setting of about 3500 rpm. Havent flown it yet though.

What are you using for fuel?

Power master DZ 30%.

Engine is still at a very rich setting

You may still be too rich at the top end. Normal setting with that fuel is about 1.75 turns on the high end. If you are quite a bit richer, the engine can quit easily from being too rich.