Mike, we are re checking all the ignition. did not have spare cap and did not feel like pulling off of other motor. got frustrated and buttoned it back up and made other easy repairs. installed new faucet in head, it was true bolt off bolt on replacement and did not need to change a thing. note original faucet, 40yrs old. nothing is ever that easy.
Jackman, carb is most likely not an issue other than the slow speed air mixture adjustments. found all spark plugs dirty-dry black. except #5 and it was perfectly clean as if running way way too lean but that cant be possible with a carburated engine, no way to run one cyl too lean via carburator. also it is not running out of gas, doesnt speed up then die back.
i get 3900 on that motor and no more. no back fire,no misfire, no vibration, just wont do anymore.
could not find a cap even at speed shops, automotive Mallory YL cap has a hole in the side of it and no gasket so could not use it. so i just ordered one.
I doubt the cam shaft issue but who knows. i can tell you that i adjusted the valves 2 different times and i know for a fact that they were all working, just dont know if they were opening up the same amount.
If i left a rag in there, i would guess it would have been sucked into the valve by now and would have shown up on compression test not to mention the noise of the valve not closing all the way.