The throttle shaft being loose will usually make them surge and hard to adjust, if it is real bad it could be the culprit. They are pretty easy to fix. I picked up the parts I needed to do mine at the local Ace Hardware Store. I would look into a good carb rebuild if you didn't do that when you rebuilt the engine. I am taking for granted you did replace the governor and components with all new stuff when the engine was rebuilt?
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DWayne
1973: 128, ag tires, 3pt. lift, spring assist, lights, 42" Deck
10" moldboard plow
2016 XT1 42" deck 18HP
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