I took apart the gear case right down to the clutch - all minty, no problems. I didn't disassemble the clutch, but when I turned it with my hand, I could feel the engine resistance which is what I should feel correct? When the engine hits higher RPMs the clutch then engages which turns the flyte and when the throttle is back at idle, the clutch spring disengages and the flyte stops turning.
So I feel like it shouldn't be a carb problem, but I checked everything else, so it must be a carb problem. While it's running at idle with the air filter off, if I give it gas it bogs down and spits a fine mist of gas out of the carb air intake hole. Clearly the carb should be sucking air pretty good at WOT.