A little history on my engine.
I picked her up off a used generator,test ran it a few mths ago before owning it. Only reved her up alittle just to her it run.
I did remove crankshaft and reinstall,theres no way to put govner on wrong.
Present day.....i decided it was time to fire her up.
Hooked up fuel and battery she fired right up and runs smooth in idle.
I reved her slowly,when i got to about 1200 rpm no load the govner pulled real hard and rpms started running away.takes alot of effort to return her back to a lower rpm.
When i say alot if effort.....i dont mean its stuck,i can feel resistance from govner trying to pull her back at full rpm.
Once rpm gets back below around 1500 she idles and runs beautifully.....untill you exceed 1200-1500 rpm,then its back to runaway.

Any ideas
Heres pics of how govner is hooked up the entire time ive owned it.
When i first recieve it there was a manual throttle lever with cable hooked direct to govner arm.
The computer on the generator went out so previous owner ran his own throttle.

Pics of how she sits now throttle set to idle.
(Edit)
Ive adjusted govner to open a max of 2300 rpms for now.
Im guessing since its a generator engine shes set to hold rpm at (example) 3300 rpm to maintain a load of 60 hertz.
So i guess i can just set govner to 3600-3800 max rpm,the run my throttle to govner arm.

After about a 1 mile run my exhaust is glowing orange.
Would this be running rich or lean.
Im running 2000 rpm loaded,19 mph carb currently only opening up around 60% travel.