This sounds like the same problem Bruce W was having on the Raising a 235 from the dead chanel. I am still trying to start my 235 and am getting the same results from the same things we are talking about. My original problems started with a valve adjustment with the engine running. I was using a feeler gauge and tightening things up to remove some clatter then it just slowed and quit. I was also loosing power after a short run, as the engine heated up. I thought this was all due to low compression and went the rebuild route.
The common threads in at least three replys is valve adjustment and carburation.
Kimo appears to have found something with the throttle shaft. Have any of you had problems with your idle mixture adjusting settings. Mine never seemed to worked right and may not have due to air leakage.
Also my engine seems to have been assembled from several compatible engines how about yours?
There has got to be a solution to this that we are missing. It will probably be so simple we will be to embarassed to talk about it.