Well, to cut to the chase--it was the carb all along. After checking the basics--fire, compression--we pulled the fixed jet carb back off and pulled it apart. Can't see anything wrong, didn't notice anything modified, just doesn't make sense. I had 2 KT engines--series 1 and 2. The series 1 had a fixed jet on it, but it had been left out in the rain--I think I can salvage the screw and clamp for the choke cable, that's about it. The series 2 had an adjustable jet carb. I pulled it off and started cleaning it out--had been sitting with fuel in it for several years, began to turn to tar. Took it apart, cleaned it out, used over all the gaskets---because I did not have a kit. Put it on and dang thing fired up. Opened the main about 3/4 and closed the idle jet a pinch--runs fantastic.
I'm some where between relieved, happy and disgusted. Relieved because I'm tired of working on this one, happy because it runs well, disgusted that I didn't give this a try before opening up the engine. Now given the hours on the tach (1700---I really don't think there is that many on the machine or the engine), I'm not upset we put in pistons and ground the valves. Valves had wear as well as the pistons were showing wear also. I do have an oil line leaking I need to address as well as torqueing the heads again. Maybe there is a light at the end of the tunnel after all.
