Mine was coming from the top but completely vertical not sideways. Now that I cut out the kinks it won't be long enough for that but I'll be replacing it with a rubber one anyway and I'll turn it to match your photo, thanks.

Hello Bvaleri, please note that rubber fuel line should NEVER be used except for a temporary repair. Always replace metal fuel lines with metal. The risk of fire hazard is too great.
Craig

Thanks for the heads up, they have metal fuel line at the auto store as well so I can get that instead if need be but my current one should be fine. I was actually able to flip the clip on the fuel line and move it so I could have it mounted the way that picture had shown. I'll try and start it later to see if that helped. If not I'll get rubber for testing and compression kit this weekend. 

Swapping fuel line angle didn't fix it, but any thoughts on using a braided stainless line rather than the original style hard line? Figure that would give me a flexible connection without the fire hazard of rubber.

proper automotive fuel hose is fine. its made to be heat resistant it also wont crack due to vibration. it could be a issue if s stick flicked up and tagged it but so could a metal line. every combustion engine vehicle in the world has fuel hoses so their not that big a risk. yes they can rupture from chaffing or just age. braided stainless is still rubber or neoprene etc. it is more abrasion resistant.

do you get fluid when you open the cylinder drain cocks? if its a lot that could be the problem bad rings/worn cylinders not sealing and stopping it from running properly. if thats the case it gets spendy fast as you do a full recondition of the starting engine while its apart as it so much work to get it off and apart anyway

I would really try raising the level of the float so there is more fuel in the bowl

I'll try and replace the fuel line and adjust the float again first.

I'm not sure what cylinder drain you are referring to. If the motor needs rebuilt then id probably end up doing electric conversion depending on cost difference. 

my mistake d7 is vertical pilot engine not horizontal.
when i looked into converting our d4 to direct start it was about the same cost as a rebuild. you might be lucky to get a running pilot engine though. do the comp test then
pull the heads and have a look at the cylinders see how much free slop there is in the bores to the piston.
that oil is going somewhere.

im currently part way through converting the d4 to a diesel pilot engine which will have key start and recoil start(if the electric craps out) its going to be a bit flash when i get it finished. but have to get the damn thing home first.

My preference would be to keep the pony, but I already have a truck that needs an engine rebuilt adding another big project to that would be less than ideal. Hopefully your conversion goes smooth and you get that thing home soon.

First thing I would do is change oil in the pony. I have run into starting/running issues and an oil change solved the issues. Also does it help with the air cleaner on the engine? That might cause just enough restriction to keep it running. You have it so close to perfect now. What happens if you hold the choke slightly closed enough to keep it running? If you can find a spot that will work then make a shim to keep it from opening all the way. Zip ties on the linkage should hold it.