In neutral, the engine has a safety built in via the shift linkage that prevents high rpms.... a feature to prevent a possible runaway engine scenario.
Spark with s/plugs removed should jump a 1/4" air gap with a strong blue lightning like flame... a real SNAP!
(Your pictured linkage... see below)
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(Synchronization Of Older 2 Cyl Engines)
(Such As The 28, 33, 40hp Etc models )
On the linkage that runs from the armature plate (the plate the coils & points set on) to the carburetor throttle roller, loosen the set screw on the brass collar that you see there and temporarily move it away from the armature plate/vertical throttle arm clevis (clevis is that thing the linkage rod slides through). We'll refer to that vertical throttle arm/armature plate clevis simply as the "clevis" from this point on.
Look at the cam that's attached to the front of the armature plate.... the cam that slides up against the carburetor throttle roller. You'll notice that there's a scribe mark on it. Also notice that at the top portion of the intake manifold there is a raised portion, that top portion forming a point. The carburetor roller should contact the cam and just start to open the throttle butterfly when the scribe mark is dead center with that point.
With the engine in gear (not running of course) have the armature plate advanced all the way (by hand) so that it is up against its stop. Now adjust the brass collar (set screw) on that associated linkage rod so that it is up against the clevis. It should be adjusted so that there is either no play, or just a hairs play between the collar and the clevis.
At this point, the armature plate movement is not advancing the throttle butterfly via the rod movement, but further movement of the throttle control, although the armature plate cannot move any farther, causes the tension spring at the armature plate to allow the vertical throttle arm to move farther which now advances the carburetor throttle butterfly via the rod. When fully advanced (full throttle), the carburetor throttle butterfly should be fully opened (horizontal).
If all else with your engine is as it should be, that should do it.
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(Carburetor Adjustments - Two Adjustable N/Vs)
(J. Reeves)
Initial settings are: Bottom high speed = seat gently, then open 1 turn out. Top slow speed = seat gently, then open 1-1/2 turns.
Setting the high and low needle valves properly:
NOTE: For engines that DO NOT have a shift selection, obviously there is no NEUTRAL position. Simply lower the rpms to the lowest setting to obtain the low speed needle valve adjustment.
(High Speed) Start engine (it will run pretty rough), shift into forward gear, take up to full throttle. In segments of 1/8 turn, waiting for the engine to respond between turns, start turning in the bottom high speed needle valve. You'll reach a point whereas the engine will either start to die out or spit back (sounds like a mild backfire). At that point, back out the needle valve 1/4 turn. Within that 1/4 turn, you'll find the smoothest setting.
(Low Speed) Slow the engine down to where it just stays running. Shift into neutral. Again in segments of 1/8 turns, start to turn the top needle valve in. Wait a few seconds for the engine to respond. As you turn the valve in, the rpms will increase. Lower the rpms again to where the engine will just stay running. Eventually you'll hit the point where the engine wants to die out or it will spit back. Again, at that point, back out the valve 1/4 turn. Within that 1/4 turn, you'll find the smoothest slow speed setting.
When you have finished the above adjustments, you will have no reason to move them again unless the carburetor fouls/gums up from sitting, in which case you would be required to remove, clean, and rebuild the carburetor anyway.
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