Small Engines (Lawn Mowers, etc.): Oil and Compression issues on 5hp Briggs, charcoal gray, compression issues

Question
I have a 5hp Briggs horizontal on a small kart, and it will only turn over a few times on starter fluid (and will barely turn enough RPM's to run for a few seconds).  It never gets completely up to speed, and I have completely cleaned the carb and tank.  I checked compression, and I am getting around 30psi (but not sure if this is 100% accurate).  I also removed the oil fill plug to check the oil, and oil immediately began flowing out the fill.  The oil is an ashy color, almost like an ashed over charcoal gray.  I don't think its water, so I am suspecting gas in the crankcase.  Where do I go from here? Is this a ring or valve issue, or will a simple oil change fix the problem?  Thanks!

Answer
Hello Jason:

This is Usually Caused by the Carburetor Needle Valve Allowing Gas to Leak by when the Engine is Not Running. This Floods the Carburetor and then the Gas Flows Into the Cylinder and Seeps by the Rings into the Crankcase. Change the Oil and Install a Manual Cut Off Valve. Manually Turn Off the Gas When the Engine is Not in Use. A New Needle Valve will Correct the Problem for a Few Months and then the Problem will Return. This is a Common Problem for ALL the OEMs, I have been Seeing this for the Past 4 or 5 Years. The Manual Cut Off Valve is the ONLY Definite Cure for this Problem. You can View a Breakdown/IPL of this Engine at this Site Addy, http://www.smallenginepartswarehouse.com/parts.asp and Select the Shop Online Parts Look Up. Then Select the Model Tab. Then Select the OEM and Enter the Model Numbers. Then Double Click on the Model in the Results Area. Now you can Select the Section of the Engine you Wish to View. Hope this Helps. I am Here if You Require More Assistance. Let me Know What Happens, Please. Thanks.

Good Luck

Respectfully

John

PS: I am Allowed to Answer 10 Questions a Day. If you See I am Maxxed Out, then Try Submitting your Question at or Just After 9pm EST (US). My New Day Starts then. Thanks.

Respectfully

John