It's tough to say exactly what the problem is, but I would start on the adjustment screws and go from there. It sounds like you have it fairly clean, so start with the screws.
Simply turn the adjustment screw(s) all the way in finger tight, then turn them out 1 1/2 turns and try to start the motor. It should run, but it may run rough. If you can get it to stay running, turn the screws little by little until the motor smooths out. You may need to experiment a bit to get the sweet setting.
If that doesn't seem to help, then it could be a bad head gasket, carb gasket, or even a corroded jet. Snowblower motors are prone to gasket problems due to the cold snow hitting the hot motor. Try the screws and let me know where that leaves you. We'll take it from there.
Here's the book you requested. I have one on my site listed that I love. Go to http://www.household-helper.com/amazon and go to the last book on the page. It's about lawnmowers, but the motors are basically the same. I also use the Techumsa technical manual for 3hp-10hp motors quite a bit. You should be able to pick that up at a mower shop for about $10 |