Frank,
It really sounds like something's not put together right. My OS 30 converted from an old RC engine, with a 7MM (.284) venturi, old OS NVA and the 703 muffler installed turns over 10,000RPM with a TF 9X5. It clocked maybe 1000RPM more without the muffler but I didn't write it down. Fuel is 10% nitro, 11% synthetic and 14% castor (GMA 10/22 W/5 oz castor added).
The OS 703 is also on an OS-S 35 with no problems and, the OS 843, a newer bolt on muffler has the same exhaust opening.
P.S. Don't necessarily trust any index line on the sleeve. I took one apart recently and it had the index mark at the rear where it normally goes but that was wrong. The transfer port is the lower of the two on the sleeve.