Hey Grumpy,
You and drjbeam are right the needle isn't sealing, air is moving in and out, no vacuum at all.
so I'm going to have a fiddle with the float and attachments and see if i can get a vacuum. If not then i can take the carby off the other mower and check the seal on that, according to the manual the needle and seat are a matched pair.

also lifted the mower and looked where the black crud is coming from exactly.
I dont think it is the crankcase seal as the shaft is clean.the crud is coming out of the exhaust hole, so it must be flooding and then running through the engine and out that hole.
will keep you updated
thanks
Pete