Well after reading all this I decided to try some Yamaha 5w30 Utility oil for quads. Its not the snow mobile oil, previously had been running Napa brand atf F type. Was told by the guy behind the counter that it would take a thousand dollar order to get the snow mobile stuff (don't know whats up with that). Anyway my price on the oil was just four bucks so it was a not a deal breaker. After a short ride now I have bad clutch drag, this is on a new bike with less than 10 hours on it.
The type F atf feels a little to grabby especially in first gear and was looking to cure that with this oil. My main concerns were smooth clutch action and better overall longevity for the motor. Looks like I'm headed back to the atf but will try the dextron III stuff this time.