Making some progress...
1. I rechecked the valves and while the exhaust was in spec, the intake was still too tight. I must have accidentally set it too tight by turning the tappet while tightening the valve lock nut. There is just a little play in the rocker arm when I move it with my hand when in TDC.
2. I couldn’t get the bike to idle longer than a few seconds, so I checked the carburetor bowl drain screw to make sure I was getting fuel. We are getting gas. The idle screw was properly set too.
3. I checked the pilot jet to see if it may be clogged since it controls idle to 1/4 throttle (or a little more). Sure enough, the pilot jet was clogged. I blew it out with my air compressor, reinstalled it in the bike, and viola! She idles great now.
She runs great from idle to 3/4 throttle. She loses power and bogs down at 3/4 to WOT. That is with a 98 main jet, middle position on needle (only 3 positions) and mixture screw @ 1.5 turns out.
I’m going to stop tinkering with the carb at this point as I’m going to order a 2 stage pod air filter.
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