This ain't your DSM.... Alky requires a few simple yet necaccary parts/mods. First you need to gut the gas cap diaphragm, install a fuel pump, modify or buy the carbs set up for alky. The carbs should have the needle and seat set up for the fuel pump. There is some drilling needed on the dump tubes as well the jets. Install power jets and bigger bowls also.
There are a few well known places to get already set up carbs if you have money to foot it.
You knew as soon as you posted a photo of the carbs in the build thread. ( http://bansheehq.com/forums/index.php?showtopic=150051&&page=17 ) It's ok. You were either impatient or lazy. Either way it's fixable. It's just money.
Then your .4 hp per CC is rediculous. Because that would be 100 hp 250's. The most I've seen is close to 60 out of those so I'm glad you at least have a realistic number.
I commented on that in the build thread you made. Before you even ran it. So your a gambling man, huh? You spent a lot of time and money on a gorgeous bike and yet knowing you had a problem, ran it anyway? That thing was running out of fuel man. If it has no loss in compression I'd say you bet the house and won, but don't try again. Fix the fuel delivery.
What else is done to the fuel system?
Dual petcock, gutted gas cap, billet bowls, etc? That stock T fitting won't cut it if that's what you have going on.
^ But if we are talking about actual K&T cylinders.... It is just curtious to not post a builders shit. Could they be duplicated by looking at them, probably not. Again there is a reason they don't just get on here and post all their stuff. It's their living and giving it away free doesn't keep people coming in your doors. We're not talking about someone wanting to copy the local yokal at the corner shop. So I'm not sure why you put it that way. You make it sound like K&T is some group of cut rate hacks with your last statement