Couple of things...
tketter wrote
there is a lot of smoke coming off the engine and out of the air vents (one has a filter, and the other is a hose near the starter).
Smoke out the breather / hose is a sign of blow-by. How many miles? Have you ran a Dry / Wet compression test? Dry is the way it sets cold, Wet is a small squirt of oil down the sparkplug holes to seal the rings. A low "Dry" reading that has a signifcant increase in numbers "Wet" indicates worn rings.
You also say you recently acquired the bike and you have a lot of smoke coming
off the engine. Was it freshly painted when you bought it? Is there oil leaks at the head or cylinder base gasket? either of these will cause an engine itself to smoke.
tketter wrote
The bike seems to be running HOT!
I'm thinking it's running too rich.. I might need to adjust the needle height.
a LEAN engine runs hot, rich is cool. How is the exhaust..
Does it look blue? (indicates running rich or burning oil)
How are the head pipes up by the engine, is their chrome blue ? (indicates lean)
Are you thinking it is hot purely because of the smokeing? Do you have a way of measuring the temp? You can pick up a infra-red thermometer pretty darn cheap nowdays. But a good old fashioned dial thermometer for a bar-b-que grill can work in a pinch.
81 Honda CB750C - Current Project
67 BSA Spitfire MkIII - Next Up (Full Resto)
81 Honda GL1100 - Bob / Cafe´
80 Suzuki GS750L - Bratstyle
72 Honda CB450K5 - Basket Case
73 Honda CB350F Cafe' (Gone but not forgotten)
Don't wait for opportunity to knock... kick the door down and drag the old harlot in!