FOUND IT. It was the power valve which was leaking. I used the washer which has a triangle shaped inner surface. I also used the new power valve. These two don't work together, just use the regular washer and the new power valve. Thanks to all with important info, I hope this might cure similar problems when rebuilding a carb. Thanks again

 

Back again, I installed 46 jets, as per pony carbs suggestion, runs great. Do I need to back of the timing? Should I just drive foe awhile and check the plugs/tail pipe? Thanks

 

Timing should be advanced for high altitude, anyway. Drive it and make sure it doesn't miss throughout the rpm range and doesn't ping. If everything sounds/feels good, just have fun.[8D]