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The owner's manual says notch #1, but Bing says #2 in their manual. when I last renewed some carb parts I tested both positions and #2 is the way to go.
Not the ultimate source...best to use the Bing settings. Remember, all of the settings recommended...by any source...is just an initial setting. For your setup, altitude, style of riding, etc., you might need to change things.
According to the Bing book, the #1 position is closed to the blunt end...this is the leanest setting for the needle. Remember that the idle circuit is in play from 0-25% throttle, the needle from 15-80% throttle, and the main jet from 60-100% throttle.
Edit: And now to contradict myself, here's a page from a /6 manual...note it says clip postion 1 for the R90/6:
As I said, pick something and see how the bike peforms. The clip position is a relative big change to fuel flow. Jet sizes, etc., would be small changes.