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I'm not as familiar with the 1904, but I just went through a two barrel on my 292 and had the same problem. My kit came with the wrong needle and seat, so I inspected the old one and went back with it. It was old enough to have some kind of packing for a seal that had deteriorated more than I thought and was not sealing. If the 1904 has a similar needle and seat, check that seal. They now use o-rings. I just dug out the old packing gasket, and installed an o-ring. Although this is not for a 1904, yours may look something like the one in the link below. I really don't think the 1904 has this style, but it could be leaking somewhere around the seat even though the needle is closing.
Hardlyrider...thank you for your answer and no this is not what it looks like (wish I could copy the drawing I have). I just don't know what to do. It is a rebuilt clean carburetor that I had sent off.
Well, I finally figured it all out. The fuel pump I was using was at 5 lbs. of pressure. I went to Oreilly's and bought a fuel pressure reducer. I have it dialed in at 3 lbs. of pressure to the 1904 carb. Now, she is running like a champ! Yahoo!
Thanks Theo! It is too bad this carb acted up again. I just went to Rockauto and ordered a rebuilt one. Will write an update in the next few days. Going to keep the original carb and order a needle and housing for it.
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