Thanks Theo, I didn't like the way the gasket lined up either. I have never actually seen one not line up before on an Over Head valve engine. I also noticed the bolts were not torqued correctly when taking off the head. I re-torqued them up correctly according to the GXV120 Head Bolt Torque Specifications.
Good suggestion about the muffler. I only ran it for 10 or so minutes so I swapped the muffler over to see if that makes a difference tonight after re-assembling the engine. I have to wait until tomorrow to give it a good run.
Re the fuel - the first job I get with all mowers is to drain the fuel, clean the tanks and replenish with fresh fuel.
I was thinking the fact the head may not have been torqued correctly could be an issue.
Open to suggestions.
Jaffa