Your problem was the float adjustment. You should have left the cap on there. Yes, it limits needle movement, that's its job. It wasn't put there at random as a prank for you to find and remove, and now sooner or later you're likely to have a real fun flood event.
you were right, had to put it back on today to stop the flooding! seems to be fine but it go back to flooding ill be putting fuel injection on it! runs great when its right!!
