It will run at idle and full throttle but not midrange. It will dump fuel out of the overflow occasionally. Float height according to the manual is .946" +/- .004". I've ordered a choke plunger rebuild kit thinking it may be worn and allowing fuel to pass by all the time. Pulling the body work and tank now to get a better look into the intake to see if there is some kind of obstruction. Compression is good, valves are good.
So maybe change the needle position? A new needle and seat came with the kit and I installed the needle clip into the same position as the old one was. The bike does have an aftermarket Supertrap exhaust that has been in place for several years. It ran fine several years after the exhaust was installed,
These have a decompression release, which can make compression tests inconsistent. I would recommend doing a leak down test, because piston and rings are not always the cause of lost compression. Very often it's the valves, if there's even a problem at all. The leak down tester will show you what is actually leaking, and how bad.I was incorrect stating that compression was good. I just believed it was ok evidenced by the resistance felt when operating the pull starter. Measuring compression yielded about 105 lbs., falling short of the serviceable limit of 145 lbs. and normal spec of around 175 lbs. So, I am pulling the motor for a new piston and ring set. Cylinder bore measures good at just over 66 mm in several locations top to bottom. Thinking is, the carb flooding thinned out the oil considerably and wiped the ring seal. New gasket set, piston and rings being researched now. An after Christmas project as if I don't have enough already.