Picked up a 85 klt 160, they have swapped the carb to a 26mm mikuni pe model, it does ok on light throttle but cuts out completely when you go wide open. I've discovered you can turn the idle screw way in and turn on the choke and it seems to run alot better. I've been searching the internet and it seems like the vm22ss carb that was stock is nonexistent in today's world. I ordered another smaller mikuni that I hope works better, it's hard to find one that's not a flange mount.
Since it runs better with the choke on, it sounds to me like you have a jetting issue, not a carb size issue. When you use the choke, it either blocks off part of the air flow or it adds extra gas depending on which style of choke you have. It's probably running lean.
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