The original needle clip position is in the #3 down (center) groove. I found the #2 position to be too lean, for what that's worth.
If your bike has a 122 main jet that should be pretty close, and if it has a 60 pilot you may find that to be one or two sizes too rich. I never tried a 3.5 throttle slide, but that made a big improvement on my MR175 (basically the same carb).
If the carb leaks no matter what you do, make sure the fuel cap vent is clear.
Ray
_________________ '74 CR125M (175cc), '75 MR175, '82 RM250Z, '08 YZ250F, '14 Zero FX electric, '14 Zero MX electric, '18 Alta MXR electric
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