OK, Ive checked the Float level per Dave's and this forums instructions. It is exactly paralell, and 16 mm from the edge. The Needle Valve has NO groove in it, and the springy tip moves freely, but has spring in it. There is no noticeable play in the float body assembly, and the floats do not have any fuel in them.
HOWEVER, in an effort to figure out why it hardly idles, Even with the Idle screw ALL the way in, I turned the fuel petcock off, to see if it would increase idle as the float bowl emptied (leaned out..). Well, almost immediately (5 seconds or less) the Rpms increased, and it idled at a Higher RPM, More or less where I thought it should with the Idle screw all the way in. And whaddya know, the Air Screw now effects Idle as well.
As soon as I turn the petcock back on (2 seconds) the idle drops, and it barely runs. I turn the valve off, and it idles up again. This time I leave the valve off, and after 5 minutes or so, the expected lean drop occurs, and it dies (out of fuel).
Petcock back on, bike immediately fires, Idles high, and then back to low. Petcock off, and it increases again. All of this with the Idle screw all the way in, and the Air screw 1 turn out from seated. If I turn the Petcock 1/2 way on, the bike continues to run.
What could be the issue? My only thought is maybe the springy end of the needle valve has gotten too soft, so that the weight of the fuel opens the needle valve a bit, even with the floats adjusted, and it floods out....? Any thoughts?