DTX

I had mounted the magneto gap by site but to be sure I just readjusted to .010-.012, slightly closer than what I had. Keep in mind this problem came about before doing any work on it. I also had to flash dry the spark plug as it seems to get wet. Now when I cranked the motor for an instance reved up some rpm then proceeded to die until I held the choke flap open, then ran the low rpm sputter again. After studying that and looking down the wet carb throat, I feel that it is getting too much gas but cannot adjust out with the set screw.

The carb seems simple. The old diaphram under it was replaced last year(ran great) and replacing it again after the problem appeared did not fix it. If it is too rich, what within or below the carb area could be the cause?
I am just about ready to remove the carb again for futher inspection but do not know what to look for. Vaccum somehow is used to draw the gas up from the tank but I am not familiar. I think the gasket diaphram regulates the flow in some way...