Vector, thanks for the tips. Here's a shot of the problem child!
Well, I checked the floats and they are correct now. I was sure I fixed it. The "tang" on the float was not level with the needle and seat. Due to the angle of the tang I thought it might not be closing all the way. Put it all back together, still leaking. I took it back apart, switch the needle and seat with the one next to it and it seems to be working as I adjusted the pressure back up to 2.5 -3 lbs.
I get what you are saying about the heat. I am going to order some more gaskets along with the Jaycee needle and seat assemblies. They are good to 9lbs!
Hell, I haven't even had a chance to do much with the jetting yet but that will come.