Valve clearance is critical in those engines.
Adjusting the valve clearances should resolve your problem.
You can find instructions on how to do that on Briggs web site at this link:
http://faqs.custhelp.com/cgi-bin/faqs.cfg/php/enduser/std_adp.php?p_faqid=3441&p_created=1101860144&p_sid=99hT3rmi&p_accessibility=0&p_lva=&p_sp=cF9zcmNoPTEmcF9zb3J0X2J5PSZwX2dyaWRzb3J0PSZwX3Jvd19jbnQ9MTAxJnBfcHJvZHM9JnBfY2F0cz0wJnBfcHY9JnBfY3Y9JnBfc2VhcmNoX3R5cGU9YW5zd2Vycy5zZWFyY2hfbmwmcF9wYWdlPTEmcF9zZWFyY2hfdGV4dD1WYWx2ZSBBZGp1c3RtZW50&p_li=&p_topview=1
Big link, copy and paste it into your address bar. Scroll down that page to find "Adjusting Overhead Valves"
Rick, November 2006