Todays update on rebuilding the engine, crankshaft has been turned down to 1" diameter for a new lovejoy coupling and installed. Camshaft is installed with timing marks aligned. Block has fresh honing with new rings on the pistons, which are installed. Valves on one side are installed but I lost a cap for the valve stem for the other side, so this week I'm going to call around for a new one. Don't know how that happened because during dissasembly I grouped them together and put them in zip-loc bags labeled to where they go. First mistake I made. Also Learned how to change govenor cup spacer from nylon/plastic to metal. That one I used red loc-tite on the inner ring to secure it.
to a metal one.
Also found that the newer nylon/plastic spacers have one longer finger that extends into the bottom notch of the outer ring to sort of keep it locked in place whereas the one in image that I have can possibly start to spin causing govenor over speeding of the engine. These spacers are not glued but held in place by a snug fit on the inner collar. Over time they can become worn and cause problems. Removal only requires a firm grip with your fingers, easy to remove in other words. The spacer above was put in early bge and p-series engines, then was changed to the newer one. Second mistake is I had put the gear housing on with govenor linkage in the wrong direction, so it is now put back together the correct way. That's it for now.

Sorry for the long ramble. I hope this is useful info for someone