Alright don't laugh. I found the problem but it was a serious noob overlook by me.
This morning, after losing just about all hope and wasting 3 hours sitting in the forums reading other peoples problems and trying to piece together mine, I went out to the garage.
I started the bike - one kick - instantly fired up and idled good. I took it for a ride and tested out the throttle. Still bogged whenever I passed 1/4 throttle - I can only assume that this is the point that the main circuit starts to open.
I went home and did a little experiment. I took out the air filter. I drove without the air filter. The bike ran lean at idle and had very little power, but began to open up when I passed maybe 3,000rpm. When I pulled the throttle past 1/4, It didn't bog, it took off and actually had "some" power.... but not much. More than with the filter at least.
I came back home and pulled a spark plug. It was white again? So I finally got it to run lean? Alright, so If the bike runs painfully rich with the filter on and very lean without, I needed to find some sort of "middle-ground" restriction to make the bike run correctly. So, I took out the filter retainer spring and duct taped the filter so there is a gap of about a centimeter between the filter and the airbox. I then took it for a ride.... and it ran AWESOME!!! Seriously like a banshee.
I pulled the gas up to 1/4 throttle and the bike ran normally. I then pulled the throttle up to 3/4-full throttle and the thing pulled like a freight train!! Pulled right past 5000rpm without a hiccup and pulled to 9000rpm smoothly and consistently. Every shift. I got it to pull to 100mph on a long abandoned road - previously it wouldn't even pass 55 unless i was going downhill.
I drove back home and pulled a spark plug (the same as last time). It was tan-white and clean!
So, the verdict?
I need a new air filter. That is all. My old filter (the original - 36 years and 6800miles on it - didn't look very dirty) was restricting enough that it caused the bike to run way to rich when the main fuel circuit was opened. Awesome. All of this work and heartache just for a measly air filter
Oh well, at least its cheap enough
could be alot worse!