Bluish smoke: My initial thought would be valve seals. Oil settles in the chamber after it has sat for a while. Then will burn off when fired up and go away. Also (typically), if it's the rings it won't stop smoking completely. It will decrease a lot, but should still smoke under acceleration. Run a compresson test on it. That should tell you if there's a problem within the cylinder.

Rude Dog

 

I called Dynojet today and they said the fourth position from the top is the correct one.

 

With a slip-on silencer, prodesign filter kit(foam 2 stage oiled fitler) and the K&N jet kit Dynojet said that they have had the best results with the clips in the second position.