I found it. I've spent the last 2 days trying to set up the power valves without pulling the cylinder. The manual covers how to do it with the cylinder removed, only. I didn't want to buy a head gasket. Anyways, I decided I can pull the cylinder without removing the head. I set up the valves according to the book. I pulled the right crank case cover and found some tabs on a washer were jammed under the actuator for the governor. This took up some of the trave, so when I adjusted the valves to be closed there was not enough travel in the governor for them to open. Everything looks promising right now, I'm going to ride it in an hour but I have to buy oil first. Turns out I have a Wiseco piston and Boysen 2-stage reeds.