Update:

Got swamped early at work and didn't get to spend too much time on it. I watched a lot of youtube videos last night/this morning and felt good about doing more indepth stuff on it.

1. removed muffler/exhaust and inspected piston and cylinder with good flashlight. No marks or scores on either so that is good.

2. Removed carb and tore it down. Found trash in the carb along with the diaphram being distorted with a small wrinkle in it. I have a new rebuild kit on order, should be here by the weekend.

3. Pulled cover to inspect/test ignition coil. Everything inside here was filthy, also ignition coil was well outside of specs for gap distance between magnet. Removed coil and cleaned everything out. Re-installed coil and set at proper gap.

I have everything put back together and I am waiting on the carb kit, also got a new air filter, new fuel pickup tube and screen.

Once kit comes in I will rebuild the carb, install the other parts and give her a go. I think this will finally solve the problems. In between now and then I will take the plug out spay cylinder down with carb and choke cleaner and let it air out/dry for a day or so with a rag over the hole.

Thanks so much for all the help on this, I now feel like a stihl rep and would feel good doing a complete tear down of the engine if needed.

I know it seems like I'm crazy for doing all this on a saw that isn't mine and that I didn't mess up, but it belongs to a good friend that always lets me use stuff when I need to.

Working now on buying my own power tools beyond the starter wall mart /home depot type stuff. Got a Stihl 250c coming my way and will pick up a good stihl blower and edger over the summer. Trying to get to the buy once/cry once stage. I don't do a ton of tree cutting or other yard work, but ready to have quality stuff that I can rely on. And "Mikey" ain't comming near any of my stuff.

Matt