Looks right to me. I put mine just a tad lower than you did, as far down on the "solid" part of the fork as possible. Mine doesn't have fork boots, but most others with them said that they either have to push them up and they look scrunched, or they cut them shorter. I just have some cheap fork skins on mine to protect the seals. Hmm, I guess I haven't figured out if it's at idle or main. I just remembered that the mixture seemed to be better when I wasn't running the exhaust insert, so I pulled it back out, and I re-adjusted the mixture screw back to 2-1/2 turns out. I'll try that again and work from there. There was a lot of black build-up in and around the insert when I pulled it.