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I just found out that gas was leaking into one of the floats and causing the problem.

Mine does the same thing as soon as it is completely warmed up. Same engine. Same carb. It gets flooded and dies. It runs okay until you let off the gas and then it dies. I'd be interested in some suggestions.

Regular gas will be fine.

25 psi doesn't seem too low to me. Sometimes mine dips below 20 after it's been warmed up. I don't think that would do any damage.