Small Engines (Lawn Mowers, etc.): Tecumseh H35, magneto ignition, head gasket


Question
 I have a rototiller with a Tec.  H35 engine,  I have been told that means it is a 3.5 horse.   
   I put a new carb on it, and a new magneto ignition unit.  When it gets hot it won't run.  It quits and is hard to start.  Sometimes it will run for a while after it gets hot,  and I am able to adjust the carb good.   
 I took the head off today, one of the bolts was loose.  The valves looked good and seem to be working well,  looked nice and tight ( I don't have a compression tester,  but it will blow my thumb off of the spark plug hole when assembled).
 I suspect that I had a leak around the head gasket.
   What I want to know is,  I permatexed the head back on.  The head gasket is metal,  and I ptexed the gasket on both sides and where it contacts on the block and head.
 I have not started it since reassembly.  
 Permatex is said to withstand 400 degrees.  
 Does the head on this machine get hotter than that?  Is the permatex likely to get hot and find it's way to the piston?
  Also, is there something else on this engine that you think might be causing my probs?
 Thank you VERY much.

Answer
I don't know about the Permatex but I know JB Weld will soften on the exhaust side of the head.

I would recommend replacing the head gasket.  Clean all the Permatex off the block and head before replacing the gasket.

Torque the head bolts to 200 inch pounds.

I've seen this problem several times on Tecumseh engines and replacing the head gasket along with torquing the head bolts usually cures the problem.
Let me know if this helps.
Eric