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Should be a 40:1 mixture, but 50:1 isn't harming anything.
Yes it sounds like it could need a carb rebuild... (new gaskets, diaphragm, torn apart and soaked in carb cleaner for a few hours and all hole blown out)
If it runs, which it does, it has enough compression to run.
If its oil on the muffler, it is running to rich... if it has adjustment needles on the carb which it probably has given its age, 1 to 1.5 turns out from all the way snug on both then try to fine tune.
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