SUCCESS!!!!!!!!!!!!!!!!!!!!!!!!!!!
I cleaned everything, pulled of the carb, all the linkages, fuel bowl, fuel line, jets, and magneto. Bottom line is, it runs, but I am unsure of what the fatal issue was, there seemed to be a combination of things.....
1. Fuel line had leaves stuck to the bottom of it.
2. Vacuum line from cylinder was not sealed/assembled well.
3. Stuck diaphragm valve/gasket.
4. Screw inside of the carb

The screw turned out to be missing from the side of the carb just above the choke butterfly. I think it may have been some other type of metering device or it was used to connect some other component on other engine models. Either way, it looks like someone accidentally dropped it in the carb.....

I took it out and put it where it was supposed to go....
I reassembled everything, took it outside, pulled the rope and I heard it catch on the first pull (something it didn't do before!). It sputtered a little and died, but on the second pull it caught and ran, I left it running on idle for 5 minutes, and then used it for the rest of the afternoon to take care some of our heaping pile of sticks and leaves

.
He didn't say, but if he is getting a back fire through the carb, it is a dead giveaway.
I would put a dollar on the tabel that he will find a bad fly wheel key if he digs that far.
No back fire, and you owe someone a dollar.
Greatbear is right on, with one possible exception. IIRC, the fuel pump diaphragm is mounted on the side of the carb, under 4 small screws.
If replacing the diaphragm doesn't solve your problem, carefully, gently, turn the adjusting screws in until they just seat, counting the turns (usually between 1 and 3 turns, down to 1/4 turn). Then back them out and using a carb cleaner spray try to shoot into these holes. Replace screws. Gently seat and back out the number of turns you counted before.
You are correct that the diaphragm is on the side. Pretty neat design with the gasket and flapper valves. I might have messed the adjusting screw; the first time I was trying to get it started I turned this screw thinking it was the idle speed screw....

Any suggestions as to what the adjustment should be, or is it good if it is running?
If the fuel tank is below the carb, most likely the fuel pump diaphragm or flap valves are shot. This is a simple fix, remove the tank and carb assembly from the engine, then remove the carburetor from the tank. The "gasket" between the two is also the pump diaphragm, the small cup inside the tank is the carb "bowl". Vacuum impulses actuate the pump diaphragm, which pulls fuel through the long pickup tube and pumps it into the bowl. There is a hole in the bowl near the top, so the constant pumping will fill the bowl to a certain point until excess fuel spills back into the tank. If the rubber is stiff or cracked, or the little flap valves that control the fuel flow are stuck, fuel will not make it from the tank as a whole and into the internal bowl (then into the carb, then the engine).
Exactly right, one of the 'valves' was stuck in the diaphragm.......took apart, cleaned, and put it back together..
I had one sold it today. Had a safety switch under the bag catch. Make sure it's being triggered
I do not see anything like this. I am not going to worry too much about it (don't have a bag anyways), and its running now, so.......
Bottom line: I got a shredder for less than it would have cost me to rent one for half a day. And it only took about 5 hours of frustration to get it in running shape.