So...I was completely wrong in thinking I was running rich in the mid range. After adjusting the needle clip up two grooves (making it leaner), I went for a ride. It was terrible. It wouldn't take throttle at lower rpm, and would lose power at 3/4 throttle. I was able to clear it up by adding some choke, which adds fuel.
I rode home, and adjusted the needle clip to the lowest of the five groove positions, making it full rich. It responded instantly. It now runs great through the rpm range, even capable of pulling from a stop in 2nd gear. It is amazing how much of an effect such a small change can have.
As a reminder, here is the diagram of the needle clip arrangement:
The only issue I'm seeing now is I'm puking a bit of oil out both the main crankcase vent, and around the dipstick. Now I see why they made aftermarket breathers that screwed into the dip stick opening. I'll have to scan ebay for such a device.