What camshaft should I use?

I absolutely hate adjusting valves running. I will not do it. It can be dangerous if you're not very careful. I adjust them cold so as not to get burned. They only change "about" .002" when warmed up and that's not going to affect a thing. Sounds like you got it right though. Do you get they rhythmic pop through the carburetor upon a load?

I tried to do it while cold and it actually added misfires and it was tapping like a diesel.

The carburetor sounds fine. No popping, but it definitely doesn’t like being loaded up. Even after idling in neutral for a few seconds after it was running much rougher overall.