I'm not familiar with the velocity needle, but if it has a richer taper than the stock needle it will probably work. I'm very familiar with the N65C, used it in at least a half dozen bikes (sportsters and big twins) and it always worked.
You can verify by adding 1-2 shims (thin washers) under the stock needle to raise it.

I agree 3.5-4 turns out is too much.

 

Well I broke down and ordered a new needle, and a couple jets. My bike is definitely running lean. It pops on decel, and all the popping/coughing goes away when I pull the enrichener out a bit. I know a 48 pilot should be too much for a stage 1 1200 but Im guessing that my air filter pumps in a ton of air. I also went ahead and got a 185 main since my carb is currently running a 180. I have a TC88A ignition in the mail as well. I'm hoping with the jets, needle, and ignition I can get this thing running as it should! I'll update when I get everything installed later this week.

 

Just another update.

got my new jets and new CV performance velocity needle in the mail this week. Pulled my carb today to install them. I bought a 48 pilot and a 185 main, decided to only install the 48 pilot.

What a difference!!! No more carb cough! I was able to set my mix screw at 2 turns out and she fired right up! Popping on decel was drastically reduced, acceleration was increased and oh my god the throttle response! it's like a completely different bike! all this tuning and test riding was done when it was 68* today so I know for a fact now my air cleaner was pullign too much air. I've read tons of times that a 48 should be much too big for a stage 1 1200 but seriously it made a huge difference! I havent seen any signs of running rich yet, no black smoke or anything but I'm sure my MPG will take a hit. I bought this bike to be a hot rod so i dont really care about MPG. I'll run it like this for a while and see how it does!

 

Most CV 40 Tuner Kits tell you to drill out the diaphragm vacuum port. IF a previous owner hogged it out, your diaphragm will flutter under certain conditions and make it fart through the carb. IF the slide spring is too light, it will make the carb fart. 45/180 is on the mark for the jetting, 2 shim washers under the needle valve is good. Play with the mixture screw.