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valve settings on a 12.5 ohv tecumceh older model engine?

does any one know the valve settings on a tecumceh 12.5 engine, also my exhaust pipe is getting to the glowing hot when running. and the engine is surging when not in a load. seems to run good when under a load (blades engaged). what could be causing this? this is an older engine but has always run good until recently. it is on an older craftsman mower.
billy, April 2008
intake .002 exhaust .004

ronny, August 2008
link Click here to see other fixes for Craftsman.