35mm PWK jetting

you need to follow the pilot/airscrew DIY exactly.
tune the airscrew till you find highest idle, allowing 20-30 seconds between 1/2 turns for the engine to catch up to the new AFR,
once you find high rpm/idle, turn it in counting turns till lightly seated.
those # of turns will tell you if it's the correct pilot.
if high idle is between 1/2 and 2 turns out, you have the correct pilot,
if below 1/2 turn = richer pilot, if over 2 turns = leaner pilot.
if idle doesn't respond to turns at all, try a leaner pilot

once you find the correct pilot, you can do 1/8th turns of airscrew to fine tune for clean revs

http://www.blasterforum.com/threads/adjusting-your-airscrew-pilot-jet.51060/
 
Back to square one. Cant seem to fine tune it. I have had it with this bike. About to just buy a stock carb and throw the DMC pipe on again. Now my gear oil started to overflow out the overflow valve when i was putting around. I put the correct amount of oil in it not sure why it overflowed. Hard to switch through gears with the new tusk clutch kit on.
 
throw the 48 pilot in and try the high idle tune again.

Hard to switch through gears with the new tusk clutch kit on.

did you adjust the internal rods after putting the new clutch in ?
I think the adjustment is in part 3............
http://www.blasterforum.com/threads/kor-engine-assembly-vids-no-crank-puller-needed.51169/

here's a better pic of the actuator/notch alignment
full
 
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Does your vent tube loop up over steering stem?

Do you have fresh fuel? What mix?
i wouldn't worry a bit about amount of smoke, it's a 2stroke !! No smoke or white/stinky smoke is cause for concern. Extended periods of idle allows excess oil to pool in crankcase due to slower velocities. Which is why you should blip the throttle occasionally.
Do you have any porting done to cylinder?

Sorry I can't help with the specific tuning. It appears you're doing it right, with the right jets, etc.