Customer, after a couple of days says when "fuel switch" is 'ON', it "pisses" fuel everywhere and won't start.. I'm just going to refund to prevent any issues.. though the question that brings me here is..
What exactly does this part of the carburetor do? I believe it's a Petcock(?) but is it used to turn fuel ON/OFF?
It is not a Choke. Yes used to turn fuel off during long storage due the needle seat not staying 100% sealed off. Actually a common problem with most Honda that have worked on where engine either becomes hydro-locked or the oil is diluted with fuel.
But as the problem the customer is describing the needle is not sealing off in the seat as should be doing. This area would need to looked at and determination made as to what is causing the problem. Sometimes it is just a hung needle or trash somehow got wedged in the area preventing sealing. Sometime even the needle seat maybe so worn that it needs replacing. Many Honda style here don't even seat available which means a new carb.