

I emailed JD and he suggested that it was likely my idle circuit which was to blame for the rich condition. He asked me to try out:
#162 Main (down from a #168)
#42 Pilot (down from the stock #45)
Red needle, 4th position from top
Fuel screw 1 1/2 turns out
I also took this opportunity to do the O-ring mod provided with my JD kit since I had the carb off.
I cleaned up the head and piston, they looked pretty good upon installation:


It took me a few weeks to get the bike buttoned back up (had to wait for new gaskets and then new cam assembly bolts as I accidentally overtorqued them and snapped one clean off), but when I did she fired up first try.
As for the Stage II Hotcam - money well spent. She pulls really hard everywhere. I haven't had a chance to take it out to the trails, but I 'm really looking forward to it. I also need to do a compression test just to be sure I've got the decompressor set right, but my butt-dyno tells me it's close.
I really should have clued in that my pilot jetting was rich, although some indicators pointed that it was lean. I had a minor hanging idle (classic lean condition) and pop-on-decel. I guess the lesson here is that these symtoms can also indicate a rich condition and you really need to pull that plug to find out for sure. All in all a great learning experience for me and there doesn't seem to be any permanent damage.
That $70 on a JD kit really is money well spent for anyone who isn't a jetting expert. JD answered my email on boxing day and was right on the money. I would likely still be chasing the lean idle circuit symtoms if not for JDs suggestion.