Garfield,
You need to tension the rope. Take the starter housing off. With the housing in your hands, pull the rope out one foot. Place your thumb on the spool so it cannot retract. Grasp the loose rope in your other hand and spin it around the spool two turns without allowing anything to move other than what your doing. This adds tension to the spring because you have pulled the rope out, and now shortened the rope up two turns without allowing the spool to turn. It should retract now perfectly. I would recommend a Walbro 'wat' kit for that carb too. Stop by the dealer, he will know which one. The inlet needle is sticking open flooding the engine. Replace the gaskets and diaphragms. Whats up is the older ones melt from the alcohol laced into our gas these days. If you need help installing the kit, just start a thread.