Tecumseh Trouble - Engine Misfire and Melted Tank

I picked up this Powermate generator for only $50. According to the seller it runs and makes power. It only needs a new fuel tank. Should be an easy fix. Maybe not! The Tecumseh engine has a misfire. It runs well for about 30 seconds until the engine heats up. The misfire only goes away when the engine is under a medium to heavy load. Is it fuel, spark, timing or compression? Can it be fixed?

Follow-up Video: More Tecumseh Trouble - Low Compression    • More Tecumseh Trouble - Low Compression  

Generator Model: PM52P5302
Engine Model: HM100-159232K

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