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Your valves also might be too tight. Basically, you need a no holds barred, Texas style, fight to the finish, by the book tuneup. Chasing gremlins before doing a tuneup is like rearranging the deck chairs on the Titanic.
Funny shit right there! I love it!
After looking at your picture, it appears to be running very rich as its full of carbon deposits. However, you say the pipe gets cherry red? IF so that tells me it should be running lean... Clean the carb right up. Check the choke as well.