As Thumperpaul observed, all that liquid in your carb throat almost appears to be oil, but hard to tell from picture.  Either way, oil or fuel, it ain't right.  It's appears black too.  Might be a result of backfire through the carb.  If you have an intake valve bent or hanging open, it will backfire through the carb.  What exactly do you mean when you use the term "Carb Fire"?  Is it backfiring through the carb?  

You stated that the valve adjustment went tight after just a bit of run time.  You said it's the second time you have adjusted them.  Your timing chain jumped.  You said you took it apart and cleaned the piston and combustion chamber.  You had the valves out of the head.  Did you verify that the valves aren't bent?  Bent intake valves would result in backfire through the carb, failure to idle, and valve adjustment problems.  Did you verify your valves are not bent when you had it apart?  Were there any marks on your piston that would indicate that the piston and valves collided when the timing jumped?  Did you check your valves for proper seating when you had it apart?

I'm not seein your idle stop screw in the picture.  Where is your idle stop screw?