Put a fuel gauge on the fuel line between the regulator and the carburetor.
In the immortal words of HRL, "test, don't guess."
(I'm pretty sure that it is proper to use, "in the immortal words of", if that person is not dead yet. Please correct me if I am wrong.)
OK so I picked up a gauge today, installed it and I get 4 psi. I found at first that no pressure would read. So then I cranked down the screws that hold the top casting to the main body. Then I was able to get a reading of 4 psi. While the pump was on I could see fuel running out of the small nozzle inside the venturi inside the throat of the carb. I think from there it runs to the outside of the carb through the shaft hole on the fuel inlet side of the carb. It's really hard to tell where the fuel is leaking out from on the outside of the carb.