Uh oh, I just couldn't catch a break. Had some time so did a water test yesterday evening and had an issue. Motor started first pull and seemed to be running great, but once we slowly began accelerating there seemed to be a slight miss just above a fast idle which did smooth out and then it accelerated to 10-12 mph at ~3000 rpms and wouldn't do any more than that. Once any more throttle was given it would go from smooth to sounding like it was missing and shaking.
I did a few things on the water after it did this. I checked the bulb and it was very firm. I checked the tank vent and it was open. I removed the cowl and inspected the fuel filter bowl and it was pretty clean and full of fuel with no air bubbles, both at idle and WOT. I tried pumping the bulb at WOT and it was still hard and even when squeezed very hard made no difference. I looked down the carb throat at WOT and there was a very significant amount of fuel coming out of the main nozzle. While at WOT I pulled the choke and it reduced the rpms drastically and choked out the engine like you would expect it to do on a nicely running motor.
Last night, I removed and broke down the fuel pump to find it was in great shape from gaskets, to check valves, to the diaphragm. Also rechecked spark and was still showing excellent. Retested the ignition coil resistance and it was still in spec. The electrical tape I added to the bare spot was still in place as well. I put the top piston at TDC and the timing mark was aligned with the TDC pointer and when statically advancing the throttle it was showing 25 BTDC which is the spec. Both plugs were a little dark but not terrible. I did run it at 2-3k rpms back to the ramp where it does run well so that may have cleaned them off some.
Any thoughts? I'm leaning towards it not being fuel starvation based on my on the water tests. I was thinking it may have been the fuel pump leaking extra fuel into the crankcase but that doesn't seem to be it either. The only other fuel issue I can think of is that the main jet was boogered up a bit from where a previous person used a poorly sized tool to remove it so its possible somebody decided to drill it out too. I still need to recheck compression but now I feel like Ive come back to the ignition system as to me it seems like it is misfiring or having weak spark at the high side rpms.