The factory needle settings will vary. This depends on where you live. The temp., humidity, etc. can have diff. effects on motors.
The stock setting on Hyper 8 port motors should be the follwoing.
High speed needle ( 4-1/2 ) turns out from bdc.
Low speed needle ( 2-1/2 -----2-/34 ) out from bdc.
As far as the P/S set being tight, it should be very hard to turn the motor over by using the crank when a new P/S is installed. If it is this hard to turn over with the flywheel on it, I would pull it back down and just make sure it was put in right ( I am not saying you do not what you are doing ) just a mistake some people make.
BTW : Make sure you oil all of the parts before putting it all together.
If you have any other questions, please feel free to send me PM.
It is called throttle control for a reason.