I can only find synthetic oils on the Royal Purple site;
http://www.royalpurpleconsumer.com/
Is this the one you have?
http://www.royalpurpleconsumer.com/products/hp-2c-2-cycle-engine-oil/
I guess you will let us know if it works or not.
If the engine is getting flooded the spark-plug will be getting clogged with oil.
Here is the carb needle setting information from the carb repair tutorial sticky thread;
Carb Setting
These posts are from the old forum thread for setting the carb needle.
Original post by Webhead.
"1 and 1/4 out for starting. I have had units run good between 3/4 and a full 2 turn
out."
Original post by usedtoolman.
"If I recall there is one more factor on the needle setting. If you have a slotted needle
the setting is 1/2 turn as opposed to 1-1/4 for the non grooved needle."
You can cut a piece from any filter intended for small engines that is the correct thickness to fit, I have been cutting circles (some chainsaws had other shaped filters) out of this pre filter foam I got from the local lawnmower/grounds maintenance/small tool repair shop.
Leaving the old filter foam off is better for getting it running if you don't have a replacement yet, as this tends to happen. Pretty nasty stuff if it gets into the engine.
So I just picked up a Tiny Tiger generator for a pretty good price. It supposedly runs good, but I haven't tested it yet. Is there any place I can get parts for it? I know it's missing the handle, so I need one of those, but I'm not sure if it's gonna need anything else.