Hi
There is a line printed on the front of the face of the cap.....make sure it is horizontal when you put it back together. There should also have been a rubber 'o' ring to seal the cap on the black plastic body.
The needle seating is correct the way you have described it. I dont think there is any spring to hold the needle it just sort of sits there!
Have you had the 2 white plastic bits out behind the other cap? (the cam and lifter where the throttle cable connects) Make sure they are back correctly if you have as one of their jobs is to operate the engine cut out switch (a little wire on the side next to the air snorkel fitting)
These Victa plastic carbs are a pain in the arse!!!!!