RE: Is too rich bad?
I would recommend buying a temp guage just to see where you are at. Tune the HSN so you are consistantly running about 270 degrees F when you are at or slightly below a half tank. Only make 1/8th turn adjustments at a time with a good WOT pass in between each adjustment. Once you get the HSN set start with the LSN. What I did was this: I did a take off and went about 100 ft and brought it back to me. Then I adjusted it 1/8 of a turn, and did another pass. For me it felt better after I adjusted it the 1/8th turn so I did another 1/8 turn in the same direction to see if it got even better yet. I did this til I felt I was loosing power and went back 1/8th of a turn.
If after your first adjustment it didnt get better make a 1/4 adjust ment in the opposite direction and see if it got any better. If it did then make another adjustment in that same direction til you start loosing power then back it off 1/8th of a turn.
It is kind of hard to explain this in writing but I hope it helps. Also, about the clutch shoes. If they are original they have probably worn a lot and like mentioned above should be scuffed up or swapped out for some different ones. The burnt out spur gears is more than likely caused by excess heat from the clutch slipping or something.