also, did you remove the washers behind the governor arm and behind the gear? if not you have 2 large metal pieces floating around in your engine.
now, does it have compression? if you dont know get a compression tester and see what psi rating it is. should be above 50psi
inspect the flywheel as it could have sheared a flywheel key and the timing could be off.
check the valves for leaks.
just some ideas, hope you get that thing running!