fuel needle settings for 3.5cc outboard

[metime]

I am new to the sport and am having trouble getting the fuel mix right. The motor will run fine for about 4 sec then acts like it runs out of fuel. When you let off it idles and has no effect when you give it throttle again, wait a couple of seconds and does the same thing over and over. Most of the time it cuts out. I am using an OS #8 glow plug with 40% nitro. If you run the motor half throttle it does fine just not enough rpm's to do anything, as soon as you give it more it does what I listed. I started with the needle 2 turns out and went up from there in very small adjustments and no change. Once over 3 turns raw fuel comes out of the exhaust. Are there any other adjustments on the nitro motors that I am missing, or what is the factory setting for break in.

Thanks,

Doug

[MECOA]

Read this
http://www.mecoa.com/faq/carb/needle_marine.htm

Is this a new engine?