B.O.,
The pressure testing checks out the bottom end. That surely reasons out the seals and or case leak.
The other post in reference to the slide, there is a number stamped on it, lower number = less taper What the cut-away does is change the air velocity over the main needle jet.
The electrode and the groundstrap look good, get a light down where the ceramic meets the metal in the plug. That small ring is what you'll want to look at for burn color or "Mixture Ring".
http://www.strappe.com/plugs.html (I can find color photo's if you like )
The "choke test" is a great idea to quickly check need for more fuel. The 32:1 I think is what might be a little different as the majority of guys run a little less oil/fuel.
Not that it's bad mind you. Especially if you have alot of space to run WOT. Our jetting will seem alot leaner as we are putting more fuel thru the bike at 40 or 50:1 , hence a 52,55 pilot where as you might need a larger pilot to get the same amount of fuel through the engine.
"By the Book" @ 50deg with the correction factor of about 1.03 x 58 that would be 59.74 on the pilot (or a #60)
and with the same correction factor of 1.03 x 168 that would be 173.04 on the main (or a #173 main)
with no change on the clip position and the #7 slide (or all the stock stuff)
Now this is estimating around 50 deg F and 1500'
It looks like you would be right on at 70 deg or so with the pro circuit jetting specs. (KX500 168 58 N82M 3RD 7)
This is with the owners manual pgs. 86 & 87.
Just something to consider..
I'm not sure this is lean enough to cause that high idle hang or not..
Hopefully some more guys will have more Ideas...
Tuck\o/
Apologies for the large photo below, I don't know how to resize it!