This is what I'd do first.
1. Check ignition (all aspects including proper functioning of the advancer).
2. If all of the ignition is well, I'd verify the position of the airscrews. In your area they should be at two turns out, provided the needle clip is in 4th slot from top. Whilst your at it, you could do this simple test: a) Have the engine idle or a bit over idle. b) Turn the airscrew of carb 1 fully home and then say three turns out. Either way you should notice a change in RPM as a result of this. c) Reset airscrew carb 1 at two turns out. d) Repeat this test on each of the other carbs. If a carb doesn't give this change in rpm, that carb has a problem in the slow circuit.
3. When bike is warm, does it smell of gas @ or near idle? That could indicate a too rich setting (actually I suspect this).
In general: CB500s don't like inline fuel filters. Remove and have the fuel lines at the proper length, 18 and 30 cm (models with the newer type petcock have 17 and 28 cm). Ideal internal Ø is 5,5 mm.