Well, fellas, I got her running good and proper. The primary problem was that the intake rocker arm was too tight. I couldn't get the feeler gage in there at all. So I set the clearances again and put it back together.
I had a coincidental problem of a contaminated tank of fuel, which was gelling up in the carburetor so once I got that flushed out, she fired right up on the first pull. Also, when I shut down to empty the bag, it fired up again without the need for the choke.
Thanks for your help, your input was key in getting this thing running again. We're celebrating Memorial Day weekend up here in the states. I'm not sure if you have a similar holiday this weekend, but from a US Navy veteran I'd like to convey my thanks to our great Australian allies who fought so well by our side in WWII and continue to fight with us in Iraq. Happy Memorial Day!