Banjo, certain small engines require the valve clearances to be set an certain amount of piston travel AFTER TDC for the compression release to function properly.
Don't know if that's the case with your engine, but if it IS and you are checking the valve clearance at TDC instead of where the mfg. states it should be set the compression release function won't work and the engine will act as you describe.
Are you checking the valve clearances as the engine-specific shop manual dictates?
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Today's Featured Article - Measuring with Calipers - by Staff. The legs of inside calipers are curved outward at the extremities to facilitate measuring small holes, while outside caliper legs have a large curve inward to increase their capacity for large work. Firm-joint calipers are adjusted approximately by the hands and then set to the feel of the work by tapping them on a metal surface. It is a common practice when opening calipers by this means to tap the top of the joint. It is better, if possible, to tap the inside of the legs, as repeated blo
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