Like he said... don't be afraid of smoke.

Better to run it rich than lean.

Remember that if you are at the point that 1-2 clicks makes THAT much difference in power, you want to turn it rich so that as you've said it seems to lose power at the 1 click rich setting, that is the way you WANT to run it!

In the air the engine will lean out so you'll be right on the money.

Also it takes a while for the engine to develop full power. Usually a couple of gallons of fuel are required.

Don't be surprized if it seems a little underpowered at first.