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That's pretty much what I'd do. Was thinking of buying a used crank and cam off eBay sending it to Hugh's. And then buying a pandemonium ignition. The only thing that would suck about it is I have a hughs ignition on it now and it would be useless.
Upsize your pilot jet a bit. Go like 5 Sizes bigger. When I bought TC's carbs biggest pilot jet they give you for the 17.5 and they don't account for elevation I went to a 22.5 just to get the bike to idle right depending on where you are and what your elevation is your needs are going to...
Have same.set up here. Hugh's ended up sending me a new cdi after we discovered it wasn't advancing.
Tc bros says the give u a rough tuned carb but u need to do adjustments. I discovered there pilot jet 17.5 is to small and runs really lean.
Today I discovered how much I really love riding my xs. Now that she's tuned properly. Iv been taking her for short rides around town . It's to bad winter is almost here but we'll press on till we can't.
Just to add my 2 cents. I'm running vm34s on my xs650 my jetting is 22.5 pilot jet with a 170 main. Some people forget that the pilot jet starts everything and needs to be the right size to work everything else if that's wrong everything else is not right either.
For example the guy who helped...
I was told that less was more. But I couldn't help myself so this bike has alot of goodies on it. She started Life as a 83 xs650 special and is now this beauty.