Thanks for the advise guys. This engine has really got me feeling like an idiot. I'm no expert but I'm not a newbie either. I have broken in other engines and never had issues like this.
I will take the advise received here and try the re-tuning adjustments before sending it in. I would REALLY feel stupid if I sent it in and there is nothing wrong with it!
I don't want to take it apart in case I do look to get it warrantied. But based on what I see through the exhaust port the piston and sleeve look fine.
I'll post the results after I try if out, even if it turns out to be "operator error."
I appreciate everyone trying to help me out.