Hello Mark,

Two things,

As Arch mentioned before, let it run for one tank at 1 1/2 or 1 3/4 HS needle setting. Do not mess with the regulator yet.
Second and very important, take that 19x11 off until you have at least 40 flights, go with a 17x13, not 18.1 x12 or any other thing you might hear, 17x13 APC, your problem right now is the prop nothing else. This is not in the manual, but that prop is intended for well broken in engines.

Just by doing that the engine should run fine, the idle at 2000 is ok for the new engine, later (after 10 flights) you can go down to 1500, you can do it know, but it will stress the engine a little as everything is tight and there's not much power at idle.

This is the way I have done it in all my 170 and they are very smooth. One note, if the engine is too rich it might misfire once in a while and that is normal.

Good luck and let us know how it goes.

Regards

Alejandro