S40 starts for a second
 

I just bought an S40 2006 450 miles. It has sat for min 3 years with gas in it. I swapped it for premium.

It attempts to start but just turns down and stops after a second. Going through troubleshooting steps I opened the rotor alternator cover and what seemed to be an oil/gas mixture came pouring out. After starting it with this cover open it ran until I increased throttle. Why would this be the only time I got it to run? It does not do that anymore. I added oil and hoped just emptying that would work. Why was all that in there? Is oil supposed to be in there to begin with?

Opened the carb and cleaned the floats and all superficial components. Do I need to open the carb up more and clean each individual part? What else may prevent this from maintaining idle? Seems to almost start better with less choke. I can't tell what else I know about it that would be helpful.

Please help, just got it on the road anticipating it running already!
Thanks!
Steve