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I would say you could use a valve adjustment, carb cleaning, and carb sync.
The reason it goes to 4000 after making the idle speed adjustment is because you turned it a bunch. Turn it a little, give it a quick rev, then check it again. Turning it 3 turns will make it idle at 4000.
Idle mixture screws are probably set too lean. Be sure to remove the caps and set them at 2 turns out. If there's any question about the gas, save yourself a lot of headache and drain it. Refill with fresh gas and get the engine warm before making any adjustments.
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