Well, it runs. The carb is leaking but that is a later problem. I have a carb kit (and a spare carb), it is just a matter of time. I ran it for about 20 minutes at various speeds & then changed the oil (Mobil synthetic 10W30). It was barely warm, but then it was about 32*F outside. The oil contained lots of fine metal flakes/powder, just as was predicted. Good to have the old girl running again.
While watching the video, I noticed that there was originally a "Waterloo 40" decal on both sides of the gas tank. I wonder what they looked like. Anyone have a photo?