Hello J.,
How you cleaned the carburetor is likely an issue. The internal idle passages get plugged and just spraying cleaner around does very little good except for wasting it.
What is the information on the engine manufacturer tag or valve cover if it is a B&S engine? Poulan does not build the engines.
EDIT:
Watch some of the You Tube videos by James Condon. He works on a lot of generators with small engines. He also works on many other lawn and garden machines with carburetors. He is very thorough when it comes to cleaning carburetors and correcting surge issues.
Carburetors in general all have the same basic function with minor changes as needed. They accurately mix the fuel and air to obtain a good running engine.
Surging problems are what I term as "gulping" air/fuel issues. When the ideal mixture of 14.7 to 1 air/fuel ratio cannot be met, the engine will surge.
That involves the internal bleed air passages inside the carburetor or an O-ring gasket that is blocking a passage.
Most can be corrected with methodical cleaning methods. For those that cannot, the carburetor may require replacement.
Do not mess with the governor adjustment, that will just create more problems or possibly damage.