It might be a ruptured diaphram in the fuel pump. Then you have gas
entering the crankcase, through the bottom of fuel pump, diluting the oil
and filling it up. The overfilled crankcase will move this gas-oil mixture
into the combustion area through different means. You should also
experience oil being thrown out of the rear pulley.

Also make sure the idle circuit is clean, this also means that idle jet that
usually gets clogged with some dirt.

Oh and I could be wrong, so this it just a theory! ;-)
later,
dave
(One out of many daves)


> Mac wrote:
>

SNIP SNIP

>> Next thing I know it won't start and I find the oil smelling like gas!
>> Drained and refilled the oil and changed the seriously fouled plugs for
>> new ones and it fires right up. Problem is it will only run with the
>> choke fully closed but the raw fuel smell coming out of the exhaust has
>> basically gotten me nauseous (sp?). This carb has been rebuilt by me
>> and set to the starting point as per several sites on the internet and
>> also the rebuild intsructions. It's such a simple carb I can't see how I
>> could have screwed it up. My neighbors and myself felt it was probably
>> carb related but after dropping on a known good carb it did the same
>> exact thing..... the only way we could get either to idle after the choke
>> started opening was to turn the bypass screw many turns out. The volume
>> control was set at 2 3/4 out on both.
>>
>> I'm at a loss now...... the only thing I can think of now is the ignition
>> giving a weak spark. I'm open to any sugestions though of course. Two
>> things I forgot to mention, I replaced all the intake gaskets and seals
>> and had it purring like a kitten about a month ago (had an intake leak).
>> I also did a compression check with all the plugs out and got 160 across
>> the board. I was almost hoping to see one low just so I would know what
>> the problem was!