Yes, so the new question I'm seeing is going to be why it ran so well on choke but not off choke. I have all the passages very clear now. Something's not adjusted right I reckon.

Once its warmed up it should run good as it's going to with choke closed--closed as in plunger down & lever up. So if it runs crap then--ok we start again. Airscrew about 1.5 turns out. Start again cleaning the carb & doin't miss the bowl bung main jet. But there's other carb parts like the small pilot jet. Slide needle jet comes right out the top after removing the jet setter with miniature Oring. But there's a side pin to keep the needle jet in the right orientation. Can't go wrong removing it but must line it up on refiting. I just use a long 5mm screw to push it out & it'll be reluctant to move if its been in there 50 years. Bit like trying to get me moving after stuck here all day typing lol. Yes dear i'll go get some firewood. Oh is it dark already.

You might think it's clean but most likely some crap got into your pilot jet. 

You need to remove the jet and make sure it's clear. 

Also, get a good fuel filter if you don't have one. 

P.S.  Great catch Tom P!

It makes sense now. You basically had it tuned to run with the choke on, but that meant that anytime you leaned the bike over gas could dump into the carburetor, because the plunger was open. If you go back to factory settings, and make sure you've removed and cleaned all of the jets, I'll bet it runs fine.

Should that clear up the problem… you should get an “atta boy” award!
Sneezles61

Another trap with pilot jets . Do check the jet itself is clear , but also check
the the passage into the venturi ( beyond the jet itself ) is also clear .
There is another angled passage that exits in front of the slide , also fed from
the pilot jet passage .

So after the choke position was cleared up. I took the carb apart one more time, soaked in in parts cleaner like last time, cleaned out every passage and jet and jet passage as best as I could. All back together, wouldn't run wouldn't even fire. Took the plug out AGAIN like I have 40 times to check spark and nothing, was flooded from all the other fails (with the choke on of course). So after a thorough clean, buttoned her up, started with choke on, fired up died. I thought well I know choke should be on for 2 minutes or so but it's already flooded so I started on choke off and ran and idled .... Wrong .. but that's the moment I could finally tune and after she warmed up all the way I did a final time and she purrs like a kitten. Runs shifts and comes off throttle without stalling. You guys are the best! Sorry to bother ya with my stupidity but it's nice to re learn this bike . Now to start an overhaul! Next year..... 

One last concern, the air mix screw (smaller one) says in the manual to do 1 1/2 out, but it runs best at 1 out. Is this something to look at something else being the cause?

Also to note I don't have a filter (yes I'm getting one) the elbow to the air box was lost long ago. 

mark is so right about the sensitivity of any dirt in the pilot jet.  My DS7 wouldn't run on both cylinders and I was convinced that the carb was squeaky clean, but I did have dirt in the pilot jet which I took out with a thin wire from bread twisty and more gumout.  I would take his advice, probably save yourself time

Congrats I think you are good some of mine are 1turn some are 1 1/2 to 2 turns what ever your bike likes between 1 to 2 turns 

Your pilot jet may not be entirely clean . It may have gum / varnish deposits
slightly restricting it . The air screw setting indicates the jet should pass more fuel .
As new Mikuni jets are readily available , I'd just buy a new one .
If your air screw still runs best at 1 turn out , I'd then go up one size on the pilot jet .
That should get you in the desired air screw range of 1 1/4 - 1 3/4 .