Drop a pilot jet size so that you can get back in range on the fuel screw.
You really need to replace the DR 270 so that you know that it is in good condition.
The conditions you describe are, to me, typical of the tuning the Dellorto. I am curious about the decel popping going away with out any changes. However, you needed to move the needle to get rid of the flat spot, anyway.
So now that you have done that, and the fuel screw needs to be full in, that is telling you that you are too rich on the pilot circuit so drop a pilot jet size and see what happens. And that is more than likely caused by the fact that you have raised the needle and are now getting into the taper of the needle which has richened your idle mix. After reviewing the charts in the links I provided to you, I am losing my mind trying to figure out their scheme of needle adjustments. The FCR carb needle are much more logical in their needle progression.
FC 501 east jetting suggestions seem to work good for him, have you thought of trying those? Ask him what altitude he rides at.
The overheating issue you speak of. Is your radiator boiling over??? If so, you may want to put on a new radiator cap to make sure that is not the problem, they do go bad. You need to provide some more details about over heating when riding on trails, how fast are you going, what gear are you in etc.... What kind of coolant are you running ? Do not use any kind of poly propylene anti freeze/water EG engine ice. Poly propylene does not exchange heat as well as ethylene glycol and water. I just use prestone pre mixed 50/50 anti freeze. But, again, either have the cap checked by a radiator shop or replace it. This is a secondary issue at the moment, even though it might be related, you need to get your bike running right first okay?
Remember, the mixture gets richer as the bike gets hotter, your comments have proved that out.
Replace the 270 so you have eliminated that as a spoiler, I don't mean to admonish you, but, you should have done that when you replaced the needle as they do wear. You know how you said the popping on decel sort of fixed itself? In my previous post I mentioned that when they wear you will get erratic results, this is one of those signs.
After replacing the DR 270 with a new one, leave the needle at position #3. Start the bike and warm it all the way up, and try adjusting the fuel screw again. If it still wont run at idle, drop a pilot jet size and see if that gets you back in range. You did try raising the idle speed right to keep it running and that didn't help?
Dale