Yeah 2 out on the HSN is wayyyyyyy to lean if you ask me. Make the needle flush on the HSN and make the lsn poke a bit from the brass throttle linkage on the lsn.

In reality you shouldnt even touch your motor from the factory as thats where its set....it can be off , but not much and thats where your user input comes in to adjust it a bit to your environment , glow plug and fuel.

If you can get it to fire....thats a correct setting and at least close to it. This is why you shouldnt really listen or worry about factory settings. When you goto tune a motor you want to set it to have good smoke , cool running (at least not overly hot) and lots of power.

As for break-in you want to set it as rich as possible , without making it want to shut off all the time.