Hey phil,
Erm,ive never heard that one before about stock needle setting being too rich,in my oppinion there's way too many variables for a statement like that to be "set in stone" fact.
Take this example,
one guy lives at sea level and spends his time on the KR just going for A road blasts,if he goes through a town/slow built up area its not for long and he doesnt care if it needs "clearing out" after he gets back up to speed.Stock settings are fine in the summer months(less oxygen) but come autumn when the temp drops he's borderline lean.
The other guy lives at fairly high altitude,and spends his time just bumbling along with the occasional foray into the powerband.(stock settings are far from ideal,he could get away with a smaller main and hotter plug).
As far as im aware,maunfactures do jet there bikes for sea level(more oxygen needs richer fuel/air setting) and tend to play it safe by being slightly on the rich side of ideal as they have no way of knowing where or how it will be used.
Also the oil will have an effect on combustion,some burn cleaner than others,some have octane stabilisers (adding oil reduces the fuel octane),some have lots of detergents to keep powervalves and combustion chamber carbon build up down to a minimum,really these are more aimed at low power low maintanance engines not something like the KR that puts out over 200hp/litre as standard,with these load bearing is more important and no adverse effects on combustion(pro 2/motul 800 belrayH1R and Putoline RS959 work well).
So take all the variables into account and you can see there is no right or wrong jetting,you've got to find what works best for your needs.
The golden rule is always start too rich and work down,start too lean and you wont know it til its too late
You dont need a dyno to accomplish this just a bit of patience and a feel for what a rich or lean mixture feels like.
In basic terms,overrich will make the engine cough and splutter before maybe clearing its self out,sometimes in the lower gears it wont you need to be in a higher gear so it gradually clears,also it wont rev out as far and will have crackly exhaust note,revs will also drop quickly and it probably wont idle.
Too lean,when the engine is run up on the stand it will probably feel very lively and snappy off the throttle,before its up to temp,when its put under load it will feel gutless,the exhaust note will be quieter and the more throttle you give it the worse it is,rolling off may make the bike accelerate,as the temp of the engine rises this gets worse,also the revs take a long time to drop after the throttle is shut off.
Bear in mind ALL settings overlap somewhat,there is no cut-off point from one to another so an too rich needle settings will effect the main and so on.
Plug chops are fine to an extent,but all there doing is showing you if the main jet is right,you could still seize an engine if the needle was set too lean,this wouldnt show up,what would happen is after a high speed blast you roll off then it seizes.
My advice,put the needle clip back,ride it around a bit if it seems to show signs of being rich THEN drop the needle(raise the clip),might save a few tears at bedtime
ATB