Re: 40 hp super sea-horse
Looks more like an Evinrude number but then I come up with 4906, 4hp, 1969.
I guess you cannot confuse a 40 hp with a 4 hp !
Unless anybody can do better than me I suggest you check the model number.
Floats are usually set so that the top is parallel with the top of the housing when the valve closes. But you could have damaged or sticking float or a needle valve thats not seating properly.