RESTO Making Progress

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I got the oil sucked out of the engine and cleaned the oil pump assembly. Then I replaced those crappy fuel lines. Now on to the carburetor cleaning. After that I think I can see if it will run.
 

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You really need to replace the fuel selector, strainer o-ring and the small 3/32" oil lines on the intake manifold.
 
So I started it for the first time last night. It smoked quite a bit once started. I just left if run for about 20 seconds and shut it off. I then re-started it and supplied the water via the connector. It only smoked badly for a short amount of time and seemed to run ok. Then it went into a high idle of 4500-5000 rpm for about 10 seconds. It then did idle down some to about 2000 rpm. I did repress the oil pump lever manually as it says to bleed those two lines but with new oil I couldn't tell if oil was passing through. I re-started it and it sounded ok for a bit then it sounded like it was knocking so I shut it off. I pulled the plugs and the front was nice, brownish but the rear was fouled. Then I couldn't get it to restart. I sprayed some WD-30 in the plug holes and turned it over a few times and it seemed to turn over good. I'm thinking I need to take it to a dealer. I'm glad that I know it will run but I think it's out of adjustment or that I put that oil pump piece in wrong. I put it in the way its shown below. What do you think?
 

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Thank you very much.

One thing I was puzzled about is that it would only go down all the way, to get the cover back on, with it turned slightly to the left as shown in the picture below. I'm wondering if the lever needed to be move to make it line up as you show in your picture?? Do you know the answer to that?
 

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There are teeth that have to align. So I had to turn mine until it would drop down but it was still hard to push down against the spring to get the cover on.

Also make sure the little button is on the end of the shaft before the cover goes on.
 
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