Need to clear some things up first. Rebuilt carb with rubber tipped needle? Did you check inside the needle seat area to see if you had a viton seat or brass seat? Did you make sure that the float was set level? What are the Model and Type numbers for you engine? The spec you listed seem a little tight to me. Does your carb have 1,2, or 3 adjusting screws? Did the oil you drained out smell like gas?
The reason I'm asking all these questions is that it sounds like your new needle did not seat properly and allowed fuel to go from your tank to the crankcase, via the carb. Most B&S engines in 99 had valve clearances of .005-.007 intake and .007-.009 exhaust. Finally I need to know the number of screws to tell you how to set the carb.