I adjusted the points at the most "open" position in the cycle, but when I start the bike it idles at 1300 rpms until it heats up and jumps to 3000.
Sounds normal.
Cold engines are inefficient and need the throttle held open a bit during warm up. There is no fast idle cam coupled to the choke lever, and no computer to maintain idle speed based on temperature factors. The idle knob on this bike is adjusted for idle RPM AFTER the engine is warmed up. (It says so in the Honda shop manual, btw.) The idle speed while cold or warming is maintained by the twist grip setting, which is normally controlled by the computer between the operator's ears.
This engine does NOT need a stationary warm up to be drivable. The operator's hand is normally on the twist grip during driving. So, keeping the engine going during initial warm up isn't a problem, but a learned technique. The engine will operate fine with some choke applied, and it is a simple matter to reach down and incrementally nudge the choke toward off during the first few blocks of driving. Once warmed up the machine idles the same as the last time you adjusted the idle after warm up.
The problem is that the plate, (no matter which direction i turn it) will not get the "F" mark to idle at the notch. It stays far to the right of the 2-3 markings. This is being done with a timing light. I will try to upload a photo.
I wonder why FAQ's are so hard to locate and read? This is about the fifth related thread in just a last two weeks.
I suspect your machine's problem is part of the epidemic of undersized main 1.4 points plates not fitting properly into the engine case bosses. As the 2.3 plate fits on top of the 1.4 plate, problems of the main plate can translate to problems on the 2.3 sub-plate.
If the 1.4 plate fits sloppily in the engine bosses, it can move side to side when the engine runs and the plate screws are loosened. The side to side plate movement dimension adds and subtracts to the point gap (previously set with the 1.4 plate screws tight). When you run out of timing adjustment range, the points rubbing block either can't get close enough to the point cam or it can't get far enough away from the points cam to open at the correct time.
The perfect solution is to make the 1.4 point plate a zero tolerance fit in the engine bosses. However, an "at-time-of-adjustment" technique is to fit shims, such as a stack of thin feeler gauges, between the plate and the engine bosses, for the stabilization needed to complete the task at hand. With the plate stabilized, the gap settings remain constant, even with the 1.4 plate screws loose during the timing process. If you STILL run out of timing adjustment range on either set of points, then shift your added shims to another engine boss, and start over again, setting gaps on both sets, timing on 1.4 and then timing on 2.3. Once all the plates and points screws are locked down, the shims can be removed. But, you might want to note somewhere which shim location worked out the best.
I'm starting to believe that the Diachi point condemnation, (as well as the dynamic-timing-is-better-than-static-timing belief) are both related to the ill fitting 1.4 points plate issue. I've not the time to prove that, at least until winter sets in.
Should I wire brush/file down the points? What is the best way to "clean" them?
I've been wire brushing the spark plugs for 40 years, with mostly success. It is convenient, but not the "best" way. The best way is one of the pneumatic spark plug cleaners and the proper powder that is used in them. Got a compressor? If not, cleaning depends on the type of deposits formed, fluffy carbon can be cleaned with a torch or a wire brush. Hard crusty bits are cleaned with a small scraper and a brush. The risk with a brush is that it can leave metallic traces embedded in the porcelain insulator. As you might imagine, putting a conductive material on an electrical insulator defeats its primary function. Wire brushing works fine in engines that have proper mixture control that allows the plugs to self clean at proper operating temperature.