When I bought the powder coating the guy at the store said to just heat up the head with a lighter, dip in powder then bake at 350 for 15 min. Easy right? No. My fist batch I laid on a sheet. Had puddles. This next batch I hung upside down from the rack. Now they all have a drip dried on top of the head. What am I doing wrong? Could the oven be to hot? I noticed the drop at 4 minutes in.

First your heating the head too long or your dipping it too long and leaving too much paint on the head so when you put it in the oven, it drips.

Also I have posted time and temps on here and another site, but I do mine between 390 and 400 degrees for 15 minutes except for Pearl White and it's 325 degrees for 20 minutes. I do add time for my oven to heat up as theses temps are what the lead needs to be at!

Always hang your jigs as when you lay them flat the paint will run off and leave that puddle!

Here is the last time I got a sheet from CSI for their time and temps for curing. Look at the notes!
http://www.crappie.com/crappie/jig-tying-lure-making-forum/56350-csi-cure-temps-time/

Also do not use a lighter, use an alcohol burner for clean flame or that is what I use. Some use a heat gun, but I do not like them enough!

Skip

So I shouldn't dip the hot head into the powder? Should I try sprinkling it on?

You can dip it in or sprinkle. The most important thing is heat control. Like Skip said you prolly have too much paint on the head. Some guys cure them head up. In other words they clamp the hook in a holder and if the paint runs it will form the drip towards the shank of the hook. This will allow you to cover it with thread and body material hope this helps. There are also several good you tube videos on the process...

I no longer do my own jigs, but when I did, I always found dipping the jighead into the powder invariably ended up with way too much powder on the head. A fluid bed works so much better. one turn of the jighead in the fluid bed and its done with a nice thin even coat. Cure it, and its hard as a rock.