[TDragon]

I'm understanding that the choke is to help start when cold by allowing more fuel.

What does it mean if you bring choke out a bit after it starts and engine dies?
Running to rich already?

When I start my bike cold, it has very slow chugging idle. After about 10-15 secs and giving a bit of throttle, the bike idle becomes more consistent and at higher idle (normal idle about 1000rpm)

My Mods are full depair, nekkid, HK3s exhaust, and dyno rejet, 155, 37.5, needle 3rd notch, 2.5 turns out. I was at 3 turns out, but gas miliage was running about 36-37mpg. I received my 40 jet and will probably replace the 37.5 jet.
Since then I went 2.5 turns out and I'm getting 40mpg.

Maybe 2 and quarter turns out?

I'm concerned that my choke is not working like it is suppose to.

 

[Danzig]

I would increase the pilot jet to the 40, this is much richer and will allow for a better cold start. The 37.5 that you are currently running could be plugged with poop causing your problems to begin with!