Ok I didn't think to take pictures of the problem until after I tore it apart so I'll try to illustrate using another machine. I had oil caked all over the carb, top and bottom, all over the bowl and solenoid, air intake... pretty much everything visible in the picture of the clean machine. After digging through old threads and doing some investigating I think the picture shows it is NOT from the upper seals or the breather gasket. It's dirty up there, but no oil, that's all much lower. I also don't see how the governor arm seal could get oil all over the front of the carb the way it was. Like I said, EVERYTHING on the outside of the carb was caked. Thoughts?