Quote
Well a guess if the needle valve is not sealing properly, then the gas would leak out of the bowl right?

No, like I said, the needle valve is in the top cover of the carb, above the fuel level in the bowl, so even if it were wide open, nothing would leak.
Quote
How would the gas make it into the oil? Through the intake manifold?

If the fuel leaks down, & you don't see it on the *outside* of the carb or engine, then it's got to be going *inside* via the manifold. If enough fuel leaks down & gets to the open valves, then it sits on top of the piston until it can get past the rings & drains into the oil.

I had this problem on a 74 Toy PU & rebuilt the carb & the problem went away. I never figured out where the leak was, even though I tested it off the engine by filling the bowl & letting it sit. It just stayed full once it was off the engine....strange, but true......

Dave