Yup how old the engine is is a huge question. A newer engine I would not go chasing leaks..
Also do you have a temp guage, what were your operating temps?
If this engine is 4 gallons or less, sounds to me more like the LSN and HSN are not in synch with each other....
IF your LSN is LEAN, then often people compensate by richening the HSN.
A Rich HSN + a LEAN LSN = High idle, poor performance, fuel spitting out the pipe and often high temps....
GO back to factory settings, HSN 4 full turns out from closed, LSN just slightly flush with the carb...
Also tune with 1/2 a tank or your going to go nuts tring to find the sweet spot as Nitro's will lean up a bit as the fuel level get's below 1/2 a tank.
Here's a write up a did a while ago, it should help.... but it does sound like a tuning issue...
http://traxxas.com/forums/showthread...ul-Tuning-tips.