The middle notch is where that needle valve C clip needs to be for your altitude.I am running a 25:1 ratio
I did replace the Chinese spark plug with the Ngk b7hs my needle valve it set to the 2nd notch from the bottom because that it all it will run with and my altitude is 667 feet
32:1 is where your fuel/oil ratio needs to be.
retorque the nuts on the top of the head and cylinder to 144 inch pds which is also known as 12 ft pds.
make sure your bolts are tight on the exhaust flange as well as the intake flange while your at it.
Once all of these things are corrected, then, and only then, will things even begin to start working correctly.if your getting smoke coming out of the cylinder and head, that is because those nuts on top are to loose, allowing compression and smoke to escape and also causing a lean burn condition the WILL fry your motor if not attended to promptly and properly....Same with the intake and exhaust bolts as well.