Its almost impossible to help someone step by step without actually being there in person, however I'll give my input.
I read your other threads.....this might clear things up a bit.
If your bike ran once on the current carb settings it should run again, so I wouldn't worry about the carb right now. From what I've read it sound like either 1. Piston Rings 2. Intake & exhaust valves 3. Something with the electrical.
1. The purpose of putting the Auto Tranny fluid in your cylinder was to tell us if the piston rings were bad or if the intake and exhaust valves where bad. The purpose if holding WOT was to allow maximum airflow into the cylinder during the compression test. The blue smoke that you got was because the fluid that you poured into the cylinder got burned, and the backfire could also been a result of the fluid. I wouldn't worry about it.
Because the compression went up much higher when you had ATF (Auto Tranny Fluid) in your cylinder, it means that the rings around your pistion is bad and/or the sleeve is scratched up allowing the air to "blowby" the rings and piston.
To correct this you will need to take the engine apart and inspect the piston and sleeve. ( I think thats what the wall of the cylinder is called???) There should be no or very little signs of wear. (Thats funny, cuz usually when your rings are gone you will burn a lot of oil.)

If in doubt. take the cylinder and piston to your dealer and ask them to just look at it right there and then and see if it looks worn to them. If there is no wear on the piston or sleeve, then you could probably just put a new set of rings on your piston and be just fine.
To take the engine apart and re-assemble it I recommend using your repair manual. Also Clymer sells ver good manuals with detailed instructions and lots of pictures.
The reason the bike started when you had the ATF in the cylinder was because it temporarily restored a higher compression to your bike.
2.If your intake or exhaust valves are worn or sticky then that would cause the bike to loose compression. From what it sounds like I would look into the piston rings before worrying about the valves. If you are still worried, find someone that could check the gap on your valves for you. Your repair manual will also tell you how to. The dealers around here will do a vavle adjustment for around $65. It is a lot of money for a little project. However, it requires some knowhow to check and adjust them, and I'm not the one to tell you how to do that. Refer to your Repair Manual or ask a good freind. It isn't too hard.
3. To the best of my knowledge and off the top of my head the points are a what help creates the spark for your sparkplug. They are are located in a unit on your bike that acts as a mini-generator. This also is what helps power your headlight and tailights. If the points are worn or not getting good contact, then it would keep your sparkplug from getting enough current or voltage or whatnot to create a powerful enough spark on your sparkplug to ignite the gasoline/air mixture.
The "timing", on the other hand, (and I've heard of adjusting ignition timing and cam timing) is what controls when your spark plug "sparks", as it will only spark every other time the piston is TDC (Top Dead Center). Your manual should tell you how to adjust the timing also.
All-in-all, it sounds like the rings to me, a low compression problem. I would look into the rings. Also a trick to starting a vehicle with low compression is to push start it. Push starting it will turn the engine over just as fast if not faster then what you could ever pull start it at.