K&B Sportster 20: An interesting little engine

So as I stated several posts ago, this is the first K&B engine I have owned. I am both impressed and disappointed in this engine. Let me explain. I ran it today for the first time. It would not hand start which is not entirely surprising, but it did leak fuel, badly. Once I got it started with the electric starter I ran it quite rich as the instructions mention. I saw tons of fuel leaking from the rear of the head. Initially I thought, hoped, it was coming from the carb inlet. Well that did not turn out to be the case. It was coming from the top of the head, as seen in the videos, and running down the back of the engine pooling up in the rear of the back plate. Now the impressive part of this is that the engine was running well the entire time! I mean once I got it started, it never missed a beat. It would idle well and transition to WOT was good. The engine runs good. So after the first two runs I took it inside and opened it up looking for some gross manufacturing defects that would be the cause of this leakage. I shot a video of that too. Well I really didn't find anything unusal but I did apply some Permatex motoseal 1 ultimate gasket maker grey around the mating surface of the top head piece. After re-assembly I ran the engine again, again I shot a video, and the fix seemed to work. There are 3 videos linked to this post. Watch them all if you want to see the progression of the first runs, dis-assembly, and subsequent run of this engine.