I have rebuilt an old 1956 Majestic 4.2 (air cooled 2K 212 Champion Engine) I have it running nicely using Stihl Air Cooled 2Stroke Oil 16:1. I bring it to WOT and get the A/F mixture set. After about a minute or so there starts to hear engine noise "clicking" and a "clapping sound" then it stalls out. I can get it started again once it cools. I think it is an overheating problem. Here is the question: the Magneto had some cracks in it and I taped it up real well with electric tape. Could it be the magneto jumping out to the flywheel? It could explain the strange noises, but I see smoke coming from the choke on the carb after it stalls.
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