Here is what I have done so far. Installed new cam gear and made sure timing is dead on according to manual. Compression release nipple on cam is moving freely in and out when pushed manually. Valve lash is 0.10 mm (using Stihl gauge and adjusted and checked when engine is cold). Engine starts immediately (on 2nd pull) and runs perfect under normal operation. The only other thing is that I feel it is running a little too hot. It just feels that way when I put my hand on top of the head. And i know if I were to remove the plastic cover and put my hand on the valve cover I would burn myself pretty good. Is that normal? The oil I am using is Amsoil Saber 45:1 mix. I must add, the engine is brand new and has about 5 hours on it so far and I am still breaking her in (with other words taking it easy when trimming with stops in between every hour or so). As always your thoughts are appreciated.

Stihl most likely WON'T cover any warranty issues as your not
using their oil...
 
To my knowledge, there isn't a compression release on that engine.( I may be wrong):
https://www.diyspareparts.com/parts/stihl/diagrams/fs-111-r/fe88e6f7-7dc7-4519-ad79
 
As for the heat, what you describe is normal.. If the flywheel is clear of debris, covers on,
it'll cool itself.  Touching ANY hot engine will obviously be hot...
 
Is this machine hard to pull over??
 
If new, won't a dealer look at it?
 
 
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High Scott. There is a history prior to this post. I clue you in real quick. Trimmer wouldn't start anymore. I took it to my local Stihl dealer and he said, you can throw it away. He did a compression test and a leak down test and said that there was no compression, most likely a valve related problem, too much for labor and parts, as much as a new one. I took it home and took it apart to see. He was right, piston and rings and cylinder wall all were great, not a scratch, both valves were good, but the valve seats were shot. And Stihl does not sell the valve seats, too difficult to replace apparently, because the whole thing is one piece (no head). But the next best thing is to get part number 4180 020 1209. Still not worth it if the dealer does the work (might as well get a new one), but if you do the work yourself it is definitely worth it. I shopped around and I got a good deal from an out of state dealer. So I put everything back together and the engine for all practical purposes is like brand new. The only thing I used from the old is the crank, the bearings and seals and of course all the accessories that go back on the new block. Considering all of that I don't think my local dealer will do anything under warranty since he didn't do the work. All the profis and pundits swear that the Amsoil Saber is the best oil around and some of them run their equipment on a 100:1 mix (scary thought). But you brought up a good point. I will ask my local dealer if there is any warranty on this unit? I mean it is a brank new OEM part. Now to your question, yes it very hard to pull (it's all compression, not anything binding etc.), with the plug removed it goes as easy as can be. I am pretty sure the 4 mix engines have compression release. Look at the cam, you can see it clearly

 
The site is acting up again, from you:
 
High Scott. There is a history prior to this post. I clue you in real quick. Trimmer wouldn't start anymore. I took it to my local Stihl dealer and he said, you can throw it away. He did a compression test and a leak down test and said that there was no compression, most likely a valve related problem, too much for labor and parts, as much as a new one. I took it home and took it apart to see. He was right, piston and rings and cylinder wall all were great, not a scratch, both valves were good, but the valve seats were shot. And Stihl does not sell the valve seats, too difficult to replace apparently, because the whole thing is one piece (no head). But the next best thing is to get part number 4180 020 1209. Still not worth it if the dealer does the work (might as well get a new one), but if you do the work yourself it is definitely worth it. I shopped around and I got a good deal from an out of state dealer. So I put everything back together and the engine for all practical purposes is like brand new. The only thing I used from the old is the crank, the bearings and seals and of course all the accessories that go back on the new block. Considering all of that I don't think my local dealer will do anything under warranty since he didn't do the work. All the profis and pundits swear that the Amsoil Saber is the best oil around and some of them run their equipment on a 100:1 mix (scary thought). But you brought up a good point. I will ask my local dealer if there is any warrant
 
 
From me:
Ok, I see the little silver bump on the cam, is that it? I never looked close at it BUT does the valve bump open slightly when the rocker touches it?   I'd suspect its not (it should) as your not getting any decompression...
 
Re the oil, I use Echo's Red Armor on everything..  Amsoil has a good reputation, I just stick with the best the 
manufacturer has...
 
If you have compression, spark (at the correct time), fuel and air, it should run.. 
You may have to double check the timing, flywheel key, etc...
 
.  
.
 

Yeah, the site is acting up. I was going to include a picture of the cam but couldn't get it to upload. I will try it again just for the heck of it to see if it works now. Btw. the link you included is one of the best sources for Stihl. While i was doing all this shopping around they popped up quite often. Ten times more informative than anything i could find here in the US, but they are in England. But I use them all the time to look at their schematics and parts lists to find the right part numbers. Over the weekend i will open the cam cover and double check all the release functions. Flywheel timing is spot on, I checked all of that when i was putting everything back together.
No attachments, too bad! I tried it again.

If you go to "post image" and open a free acct, you can
open load a pic Using the link  "for Websites".
 
( https://postimg.cc/files  )
 
 
 
It'll post full size, IE
 

Yep, Stihl, in the US, has parts diagrams "locked down" tight.
 
Looking across the pond, WAY more access...  
 
I posted above this post, waiting for "approval"....
 
.

Scott, I opened an account with Postimage but I am not smart enough to figure out how to get a picture on to this forum. Please be a little more detailed about the procedure. Is it true that Jack's is now owned by Northern Tool? Is anybody fixing things on the forum website? The picture upload worked until recently or is it my old computer.
 

Scott, never mind. I figured it out. On this cam gear, you can easily see the compression release lever.  Nah, I just clicked on the picture and it gives me a 404 page not found. High tech sucks. In the 1940s we had better phone connections than we have now. I give up and don't care
 

This site isn't allowing anything...