Ive almost got a gallon of Cool Power 30% Heli through this thing.

Its very strong. Will turn a 13X4w at over 12000 ! (im at sea-level)

I noticed now that its pretty much broke-in that the transion is rich.....so ive got the Reg 1/2 turns from being all the way in. Is this normal ?

It does a perfect 2500 rpm idle but i notice that during idle the carb feed hose from the reg almost runs dry and just splashs of fuel pass to the carb. Is this normal. Idle is great.....im just wondering.
When you advance the throttle the feed hose fills back up.

Havent flown it yet but have high hopes.

It's not right on the regulator. Make sure the valves are both at .003". If this doesn't help the problem, I would consider sending it in if you can't live with the rich mid range.