Do you mean the tubular needle housing?
If the needle housing is coming out of the back plate, that needs to be fixed. You'll have all sorts of air leaks, not to mention problems with the needle not holding a setting if you don't fix that. I know folks who have successfully fixed it with JB weld: pull it out, get the housing and backplate as clean as can be, apply JB weld where it won't ever touch the needle valve, then put it back in.
Are you trying to fire it on prime with fuel in the tank? If so, you may just be flooding because of the needle housing being loose. Empty the tank, blow everything out to get rid of excess fuel, and try it on just a prime. If it fires that'll definitely tell you something. If it doesn't fire, then you'll know it's not just flooded.
Does the glow head light? You can hear it sizzling and see it light up through the exhaust ports, sometimes.
Does the head leak? Put some fuel on the head-cylinder joint and turn the engine over -- bubbles mean it leaks.
Does it have compression?
If the answers to all three are "yes" "no" "yes" -- wow, that's weird. Try replacing the head, or make sure you have fresh fuel, or both. If the head doesn't light up, replace the head! Once you've gotten it to work on prime you've verified that it's correct from just in front of the reed valve forward: then you can worry about the rest of it.