We're only dealing with the fast idle cam in this case.
Here's how things work: when you pull/push the choke knob, you'll see the shaft for the choke butterflies rotate. On this shaft is the fast idle cam. Now, on the throttle shaft (seen rotating when you twist the right-hand grip) is the famous adjustment screw. When the choke knob is pulled, the choke shaft rotates, and the cam rotates into position so the high spot on the cam makes contact with the tip of the adjustment screw. As the cam pushes on the adjustment screw, this twists the throttle shaft a tiny bit, cracking the throttle. The farther in you turn the screw (clockwise), the farther the throttle shaft is twisted and the higher the RPM's at warm-up. The less it's turned in, the lower the RPM's.
When the system is adjusted properly, the adjustment screw on the throttle shaft should not touch the fast idle cam when the choke is in the fully open position, in fact there should be a couple millimeters gap between the two. Back the screw out so the cam doesn't touch it when the choke is open. Then do the "just touch" adjustment with the choke fully closed. Then turn the screw in an additional 2 turns to give you the extra throttle on start-up. If the bike revs into the stratosphere, back the screw out a bit. If it needs more throttle, screw it in a tiny bit more. A little turn makes a big difference. Personally, my '78 550K only needed about 1.5 turns in...
I hope this helps. Sorry for the long-winded explanation but I find if I know how the system works, the easier it is to diagnose and fix problems.