To measure the float setting, you generally measure from the top of the float to the top of the float chamber. The tech manual should give both the measurement and the reference points. (Often, the carb lays on its back for this.
Okay, that explains how to measure. I think I've found the correct measurements elsewhere. It'll be worth a shot, anyway.
If the float is a sinker, rather than a floater, yes, you'll have fuel running out all over. There may be a link that connects the needle valve to the float; perhaps this got fubar'ed and the needle won't open with the carb assembled. Will fuel come out when the bowl is removed? If so, can you lift the float to stop it? Be gentle! These things are sorta fragile.
Fuel does come out (quite quickly) when the bowl is removed. When the float is lifted, the fuel stops.
Have you removed the needle and seat assembly? Perhaps there's an obstruction. Also, gas with ethanol may have caused the rubber parts to swell, cutting off the supply.
I haven't taken the seat out, but when I had a friend (who sadly doesn't live nearby) rebuild the carb they replaced all the parts. The needle comes out when I pull the float.
If I get a chance, I'll take some pictures.
Thanks for your help on this!