I've read this thread several times and still have some questions. In the first photo right at the tip of the pen is the gap between the advancing arm and the stop. The wax-stat is completely cold therefore fully advanced. Is that the correct distance? Does it only move that far once the thermostat pushes it back?
This photo shows the manual fuel cut-off valve. There's a relationship between the wax-stat moving the advance arm and the arm that connects to the fuel cut-off. It would appear that once the advance arm is forced back against the stop it may shut off the fuel. I don't have my "Green Book" on the engine yet so I'm not sure about the adjustment. This engine is running on an engine stand and I don't have any water going through the cooling system and the wax-stat doesn't work anyway.
