Engine wont run correctly

#3
It's running lean. When you choke it, it restricts the air and richens the mixture. Could be your carb is plugged up restricting fuel. Could be a gasket leak and it's sucking too much air. I would clean the carb first.
 
#5
I just posted about this. Take a flashlight and look into the spark plug hole. Carefully observe the exhaust valve throu two crank rotations, (or one cam rotation). Does the exhaust valve move slightly during the compression stroke? I've seen many older Tecumseh motors where they were impossible to tune. Closer inspection revealed a floating exhaust valve. Pop open your crankcase vent cover and measure the valve clearance through all four engine cycles looking for changes in valve clearance (other than when the valve should be open).
 
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