TO35 Finally Running!! But...Some issues I need help with

So, I fired up the TO35 that I have been working on forever. It fired up without a lot of fuss. Several issues though.

1.) Smoke. LOTS of smoke. COPIOUS amounts if smoke. Blue smoke. Presume this is oil. However, when the tractor was purchased years ago before sitting, it only smoked at startup and then cleared. It ran for 30 mins and never cleared. It does not smoke at idle.

2.) The small needle on the carburetor is adjusted for idle. It idles OK and is adjusted. The BIG screw on the bowl seems to have no effect whatsoever. I don't know what it does or how to adjust it. The carburetor is completely and totally clean...I personally cleaned it, every orifice, ultrasonic...the whole nine yards, so I know it's unrelated to that.

3.) The throttle lever is CRAZY touchy. You can go from idle to screaming full throttle and it will 'hunt'.

4.) It has a prominent miss...just a random miss. I may need to adjust the distributor, but until I can get the throttle to 'mid RPM' without being in one extreme or the other, I'm afraid to.

A lot of these issues are probably inter related, but I don't know how.
 
I'd start with adjustment of the throttle/governor system - here is a link http://fergusontractors.org/nfs/wp-content/uploads/technical-articles/Throttle-Linkage-Adjustment.pdf and here's a youtube about it https://www.youtube.com/watch?v=31M3s0iOLQk - it's fussy -

Big screw on the carb has more to do with performance under load than where you are at. Gently tighten it down and then open it up a turn and a half to get started.

Make sure your crankcase vent tube is open. The oil in your cylinders may be from stuck rings, but may be getting pushed/sucked down the intake valve guides. If the crankcase is being pressurized it exacerbates the problem. your idea of fresh oil and rislone is good. how's the oil pressure?
 

Oil Pressure is at 20psi. It did not seem to change at all when going to 15w40. It also doesn't seem to change based on RPM. 20 psi at idle or 2200RPM. Oil breather is breathing and open.
 

Also, the water temp gauge does not work, so the oil gauge may not be accurate. I'll drop in a new gauge and see what happens.

When you guys talk about 'stuck rings'. What does that mean exactly?
 
I sprung a leak in the radiator hose. So I pulled both of them off and the tstat housing. There is not stat in the housing...so I guess that explains why the temperature gauge doesn't work.

It IS recommended to put the factory 160* thermostat in this right? There is no valid reason to NOT have a stat, correct?
 
I am experiencing pretty much the same with a newly purchased '56 TO-35. I adjusted the governor per a Youtube video that made a huge difference. Also rebuilt the carb, changed out all the wiring (kept it 6 volt). Now pops over great, idles well, the governor takes over as it should and doesn't over-rev, but still has a persistent miss and lots of smoke under load. Compression test revealed most @ 120 - 130 psi range, one cylinder @ 113, adding oil raised it 5 psi. I'm thinking it's mostly worn valves and leaky guides, but still stumped. I am monitoring the radiator water level too to make sure it's not an oil/water mix in the smoky exhaust.
 

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