KZ 750 H Issues

Hey all, I apologize in advance for this long post but please bear with me and help me out. I've recently rebuilt a 1980 KZ 750 LTD over the past couple months. Started it for the first time about a month ago and have been riding it every couple of days since. I've done a lot to it. Dyna coils/Ignition, kinda pod filters, re jetted carbs for straight pipes etc. Now the problems. It does not want to start cold, choke on or off. I have to bump up the idle knob a good bit, it will turn over. I let it warm up adjust the idle back down and it runs and rides pretty much fine. Seems to be lean on the pilot circuit so I have been trying to adjust the idle mixture screw at the front of the carbs and all of my research has led to some conflicting info so I'm hoping someone can shed a light. Screwed out twice from seated is what the manual states. I've tried a half turn in both directions without much luck. Is in or out a richer condition? Where I'm at now is only 1.5 turns out from seated and it seems that the idle hangs a bit before coming back down to where it needs to be. Also, I know that the Dyna ignition is an energy hog and am wondering if I will need to do the WG coil relay mod and if that will help my cold starting and idle issues. I have a good battery and charging system is working properly but I have not yet tested voltage at the coils.

Issue #2!
I've noticed white smoke coming from the crank case breather and the right side exhaust usually has a little bit of white smoke on start up that quickly goes away. I've attributed the exhaust smoke to oil in the cyls burning off. The smoke from the crank case breather confirms another of my worries. Compression in cyl 1,2, and 4 is 125 PSI on the nose across them but cyl 3 only gave me 70 PSI. These were tested cold with wide open throttle but with a pretty janky compression gauge as its the only one I have. I poured some oil down cyl 3 and it shot right up to 190ish PSI on the janky gauge so it looks like bad rings in at least that cylinder. I thought the ring might have not been seated. I put some Marvel Mystery Oil down cyl 3, turned the motor over a bit by hand with a wrench and let it sit over night. Next day bike started fine with a ton of smoke but ran good the whole day no other issues. I haven't tested compression again since, but would like to with the motor hot to see where those numbers go but because of the smoke I'm assuming that my ring problems are not gone. I just wanted to get some thoughts, opinions or advice before tearing back into this thing.

Aside from these issues the bike is a blast to ride. Fun and pretty damn fast for a 35 year old bike. I was hoping to take the bike to the drag strip in a couple of weeks to the last test and tune night before they shut down for the winter and wanted to know if there would be any issues bringing it and wringing it's neck a little bit.
If you made it this far, thanks for reading and help you can offer!

Hi , you haven't said too much about the bikes mileage , no of previous owners, how long its been standing or put up any pictures of it. Have you still got the original coils? It could be worth putting them back on to see if it improves starting. sometimes changing out stock parts can be detrimental to the bikes health. Some aftermarket parts aren't up to Kawasaki standards.

I don't know too much about dynacoils but you mention they have a reputation for being energy gluttons. What state is your battery in ? you might need a upgrade to something with more cranking power. Are dynacoil still a going concern? Have they a contact no you could ring for advice/problem solving.
good luck , put up a few photos as soon as possible
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If it is an air screw on the air filter side of the carb then in is less air and will be richer.

If it is a fuel mixture screw on the head side of the carb then out is more and will be richer.

Chirpy: Bike had around 17,000 miles on it when I got it. I've got the timing dialed in, just when starting sounds like its starving for gas. The battery is brand new. Charging system all tests fine. Ill put some pictures up today if I get a chance.

SBC: Thanks, That makes sense and I'm going to try backing it out to 3-4 turns tomorrow and see how that works.

The bike runs really strong especially when wound up. I'm thinking/hoping that one of the rings in cyl 3 is just stuck and not worn or broken. Thanks for the help guys.