I had a long response typed out last night that I thought I had posted, but I guess it didn't go through.
Anyway I think the clutch is my problem. It engages way too low. I have digital calipers and was ready to adjust it just now but I was confused by what I found. It didn't look like my old cag when I took the pull start off. How do I adjust this clutch? Do I need to remove the nut in the center to see the springs?
http://i42.tinypic.com/qrf41v.jpg
Also: I have the oil at 50:1 now. After reading it seems a china motor should have more oil, like 40:1 or even 32:1? Which one should I go with?