first the points and timing must be set to factory spec. you cant set the carb till the ignition side is all good. even includes a valve setting. on the carb set the main screw on the bottom to 2 1/2 turns out from its seated position. the set the mixture screw 3/4 turn out. then set the idle screw to 400 rpm. that engine will run as smooth as can be, and start with a touch of the starter. I use these settings on the work bench and takes very little fine tuning. it is kinda normal to have some gas leaking but when tuned correctly its not noticeable. you will set this more on start up when using the choke. your black smoke means your running rich so yes you will have gas leaking. that main jet on the bottom can be turned out 1 turn or so for heavy pulling but for yard work don't want to be fouling plugs.
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