Hi Aussietrev...thanks for replying, I really appreciate the help. I know its difficult when there are not pictures (I'm not that smart yet) but I am adding a link to a honda page which gives an overview of the setup. I'm not sure if I'm doing this right...
Honda In the picture relating to the governor, the control arm has a spring linking it to the governor arm. When the control arm is up (full speed), it pulls the governor arm towards to carb, which opens the throttle valve. When the control arm is pushed down, the governor arm does not move. It stays up against the carb and therefore the throttle stays open. I can push the governor arm by hand (it is not stuck or jammed), but there is nothing pulling it away from the carb (which would close the throttle).
The bolt on the bottom of the governor arm is tight and attached well to the governor arm shaft.
I'm used to motors that have a spring on the bottom of the governor arm which pulls it back away from the carb. So I'm at a bit of a loss as to what is supposed to pull the governor arm back into place.
I apologize if the link does not work.