Kz650 won't go over 2.5rpm

So after setting my valve clearances, I reassembled everything and let it sit. It sat about a week total while doing this in my free time. Now it won't go over 2.5rpm. It dies choke no choke doesn't matter. Is it my carbs AGAIN? I also noticed I'm blowing smoke out of the hole underneath my carbs (big round circular cover with a hole in the top). I got my carbs set as close as possible to the 14cmHg as I could and it's much better but still won't go over 2.5rpm. Please help! Could this possibly be a sign of a vac leak on the carb boots

Are you positive you have the correct amount of motor oil in the engine and not too much oil?  How did you check the oil level?  Ed

I see now I am low probably from all of my leaking I had. Will get more and top it off. I cleaned the carbs again didn't see any major sign of obstructions but clean it very well. It ran great out of my apartment building then the second I got to the hill it sputtered at 2.5 and died again. I guess I'll clean it again but uhg this is getting ridiculous lol I just want to ride again!

Look at your timing light to see if you have a intermittent spark.
Steve

If it was fine before you did the vaive gaps and now isn't are you sure your valve timing is correct? Did you take the cams out to change a shim or two? and possibly not put the cams back timed correctly?

I will try a timing light. And my timing should be correct. Both the timing marks are flush with the case and the IN mark is between the 45th and 46th chain link rivets back from the front marking. Its weird it ran fine after I cleaned the jets then got about a block down the road and it died again. I will throw more gas in as I am pretty low and maybe get a new fuel filter. It's got to be something stupid lol

Hope that was a memory trick, you don't mean 45/46 I hope?

Just like this. It does look like I have oil in my gas? Or bubbles of a liquid that looks like when you mix oil and water. 

You mean fuel in the oil, do a sniff test.
Carb overflow into the engine oil!!!

No lol my gas has bubbles of clear liquid in it it was in my carbs and then I just noticed it in my fuel filter I'm thinking it's water from when it rained and hasn't worked through I barely had any gas so I topped it off and when I get to 2k rpms from idle it dies. I may pull carbs off again and clean them one more time see what it does. Noticed my petcock is leaking a little as well so may check out the diaphram 

If so you will find some water bubbles in your float bowls that displace the fuel.

Yes exactly that! How do I fix this?