[aumoore]

First of all what type of ignition box do you have? That will let us know if it has a rev limiter.

For the unburned fuel that sounds like your carb is too rich or the idle circuts need adjusting. It could also be improper float adjustment allowing raw fuel to dump into the intake.

If you have a good multi-spark ignition box like a MSD, Mallory Hyfire etc that will help clear up your unburnt fuel once you get the carb adjusted properly. I added a Hyfire unit to my Unilight and it really cleared up the unburnt fuel and allowed the motor to go over 5500 rpm. Before the Hyfire the motor would miss at about 5500rpm and it burned your eyes pretty bad.