Todd I - well so far you've heard alot from some very good experts. I thought it interesting that you listed a sticking valve 1st on your list of possibilities. Couple things lead me in that direction. You indicate it seems fine for about 15 minutes. I believe that's about the amount of time for the engine to get fully warm. 2nd, going up the incline and applying more hydro speed does cause some strain/pull on the engine (rather than the reverse which has now been pointed out several times), but your governor should take care of the added load on the engine. Unless you're jamming the hydro to full forward speed I really don't think you should be able to bog the engine down to the point of it running rough. In my view the incline of 15 feet over a 60 foot distance if hardly a hill. If your engine were running correct a Hydro with the engine at full throttle and blades engaged should handle this without hardly noticing. Overall I lean toward the sticking valve. Marvel in the crankcase (besides the gas) could be helpful, but I don't think it will work over nite. I think it would take at least 2-3 hours of run time to even begin to show improvement. MMO is probably the simpliest and easiest place to start. I also like Steve's suggestion on the carb. That's an easy step to make sure everything is in order. Someone mentioned making sure the valves are adjusted correctly. That also is somewhat easy to check and adjust, and it's easier when you have the carb off, so I'd do it then. You also mention smoke (or something) coming out the breather/valve cover. If the engine is really running correctly you really shouldn't see the smoke. If you do see it all the time, and all the other things are correct then it sounds like the engine is getting tired and you're getting oil blow by. The MMO may help here as well. I'd still check all the other things on your list but I'd be surprised if you had a plugged gas tank vent. If it was I don't think it would matter if you were running up an incline or on flat ground. Spark plug is a long shot but just as well change it. Carb out of spec?? If you mean needle adjustments, well, I suppose it could be, but again, seems like this would show up on flat ground. And lastly, Governor adjustment, well, I'd leave that last. I think your Governor would have to be set nearly off completely to get your symptoms. If your Governor isn't working you should be able to tell by running on flat ground with the blades engaged, by just pushing the Hydro forward a little to quickly. If the engine bogs down immediately or begins to stall then it would seem your Governor isn't working. If the Governor seems to work correctly on flat ground as I suggested testing I'd leave it alone. One other suggestion would be to remove the head and decarbon the head and piston. Have a look at the cylinder, see how much play or slop you may have between the piston and cylinder wall. In my view decarboning is a "must" on any recent engine acquisition, especially when you don't good history. Good luck with this and I hope you find the problem.
Hydro Harry
Old Cubs Never Die (even tho they catch an occasional illness)