page18.pdf Here are my specs. I haven't bought the new ring set yet, so I can't compare with the old ones, but I guess I will just go ahead and order them and get it done with. It will either fix my problem or it won't and knowing Murphy's Law it probably won't - LOL!

Oh yea.. Their quite worn..
 
.

Oh yea, those rings are VERY WORN......

Ok, the new rings are on order. Hope this will fix it. Keep you posted! 

Hope you hone those cylinders for best performance..
 
Read up on ring placement (end gap).
 
.

SRTsFZ6
Hope you hone those cylinders for best performance..
Read up on ring placement (end gap).
 
.

I already honed the cylinder walls and now they look like factory new. Btw they showed no signs of wear like ridges, scratches etc.. I will certainly custom fit the rings when they get here according to my specs and your previous valuable advise. Why do a sloppy job when you can do it right using the same time

I got everything back together, did all the adjustments and the last thing I did paid attention to the governor. I think I did the preliminary adjustments correctly, all the springs are in place, my auto choke is right on, but now I am a little confused. I noticed that the throttle is wide open. Is that normal when you have a governor but the engine is not even running?

Yes, it's normal.  The governor will adjust immediately upon start up. 
 
 
If you have a throttle, full throttle will put even more tension on the carb,
lower throttle setting, slightly less pressure from the linkage..
 
.

SRTsFZ6
Yes, it's normal.  The governor will adjust immediately upon start up. 
 

Alright, that's the answer I was hoping for. I will fire her up today and see what happens

Engine is running flawlessly. It's running a bit fast in idle because the throttle lever is not touching the idle set screw even though the throttle control on the dash is all the way down. When I push it there by hand the idle is correct but when I speed up and then go back it won't go all the back against the idle adjustment screw. I will look at it again tomorrow. Maybe something is binding or a slight adjustment needs to be made. But the engine sounds great and runs like a spinning top. Time will tell if my oil guzzling problem has been solved. Thanks SRT for all your help