@sideshowbo12 see if the adjustment will make a difference
OVERHAUL. Remove governor from engine. Remove flyball unit, shaft and driven gear assembly (Fig. FO-32) from governor body after removing base screw. Remove spring clip and disassemble shaft and flyball parts. Examine balls and renew if they have flat spots, pits or are excessively worn. Inner surface of cone shaped upper race should be smooth and even. If grooved or pitted, renew race. Check condition of fork base and thrust bearing, drive shaft bearing and driven gear. Renew worn or damaged parts and reassemble unit.
Clearance between washer and fork base should be from .220 to .230 and is adjusted by varying the number of shims (18241) until clearance is correct. If available, Governor Setting Gauge No. ELO7691 shown in Fig. FO-33 may be used to check adjustments. To check clearance between washer and fork base, clamp shaft and driver assembly in Gauge as shown, and insert Go-No Go gauge between washer and fork base. If only thin end of gauge can be inserted, clearance is satisfactory. Insertion of gauge all the way on thick section indicates excessive clearance and thin shims should be added until clearance is correct.
Check governor lever shaft assembly and needle bearing (Fig. FO34) for binding or excessive looseness and renew parts where required. If inner lever assembly is loose, install new parts or insert a 1/2 x 2-7/8 inch shim as shown in Fig. FO35. Check governor shaft bushing for wear and if necessary renew bushing, using suitable removing and reinstalling tools as shown in Fig. FO38. CAUTION: Make sure that thrust washer shown in Fig. FO32 is in place before installing bushing.
Check governor arm adjustment, using Governor Setting Gauge as shown in Fig. FO36. Clamp housing in gauge as shown and hold governor outer lever in wide open position. Insert Go-No Go gauge as shown and if only first step of gauge can be inserted, clearance is satisfactory. If not correct, unclamp housing, lay governor arm across flats on fixture and strike governor arm lightly as shown in Fig. FO37. Reclamp governor and again check clearance after bending arm. Reassemble governor and install on engine.