LX188 Surging Issue and Fuel leak

Hey I have a LX188 with the 17hp Kawasaki (water cooled) engine. This thing hunts terrible.
When the unit runs there is no gas at all in the fuel filter. None. And it never fills up. All linkages are free to move no binding.
All new fuel line so no leaks and still no fuel in filter. Solenoid works on the carb.
If I remove the fuel line between the pump and carb. gas will blast out of the hose from the pump side. ** then gas will fill the filter up like right now** once you attach the hose again and start the engine filter is then emptied once again.
What in the heck is going on with that? I would think there should be gas in the filter.
I looked in the carb and it was spotless. I cleaned it anyway.

UPDATE:

The carb is spotless and it runs a little better now. New gaskets on the front and back of carb.

First issue: When I turn the engine off the carb over flow leaks. If I pull the fuel line off between the fuel pump and carb. gas will spray out of the hose coming off of the pump with great pressure. Should there be a bleed off in the pump for the pressure? I don"t see how the float and needle will hold that pressure back?

Second issue: The unit will not idle. If I put my hand over the air intake with filter and cover still on THE engine runs perfect.

If I blow compressed air around the carb while the engine runs it will kill the engine. Fix I made sure the carb was tight so there was no unseen gap in the gaskets THAT fixed that issue.

Screwing the AIR MIXTURE screw on the carb does nothing.

I bypassed the fuel pump and put a gravity feed tank on instead RESULTS- now fuel leak at the overflow tube on carb. AND engine still surged.

Your Thoughts are very welcomed at this point.

Thanks
Jim

You brought back memories. I have an lx178, basically 2 horse different, but same carb and I had same issues. I fiddled with it so long that I got the governor out of whack. Took it in and had the governor reset and it was a faulty needle and seat. the old one looked good but a new one solved the issue. and the fuel filter. if it is new and the gas in the tank is clean it looks like it is empty when in fact it is full with no air space.

Well while searching the forums and the internet for answers to my LX188 Surging issue, I found a lot of issues like mine however nobody ever announced what they found to be the problem. I would like to say it took a new carburetor to cure my surging issue.