The fuel valve should be fully open when running the engine.
An easy test is to remove the drain plug in the carb and see how much fuel is actually making it to the carb. Get a clean, clear container, pull the plug with the valve open. It should give full flow until the bowl empties out, then maintain a steady stream as fuel comes down through the needle valve. If the flow stops or slows to a drip, there is a restriction. Could be a screen in the fitting ahead of the needle and seat, clogged seat, float set to low, etc. Also look at what drained out. Look for water settling to the bottom, rust flakes, etc. Those old tractors are prone to collect water and rust in the tank. If it ends up in the carb it will clog the jets, won't run on water!
The carb is known as an "updraft carburetor". Dripping a little fuel following a failed start is normal. A true flooding carb will pour gas out on the ground, not into the engine like a down draft will. Also be sure the choke is fully closing and opening, and the air cleaner is not clogged. The oil cup underneath is only part of the service, occasionally the whole canister needs to be disassembled and cleaned. Try starting it with the cleaner disconnected, just for a test.
Another test is for spark at the plugs. Old ignition systems can be troublesome. Be sure the distributor shaft bushings are good, the points are set and working, wires, rotor, cap are good.
Don't be afraid to work on this thing, they are simple and field serviceable. A shop manual will be a very valuable investment!
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Today's Featured Article - Gettin My Old Tractor Home - by Clayton Sweeney. My name is Clayton Sweeney. I am from Southern Maryland in a small town called Lothian. I am 20 and my father and I are the proud owner of a 1954 Allis Chalmers WD-45. When I was 18, I dated a girl in the next county over. Her family are tobacco farmers. It was a cold Thanksgiving evening, and we were going up to her Grandparents house. As we passed one of their barns, I noticed something orange in the corner of my eye in this old shed. It was pretty dark and I asked what it was
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