andrewdell i'm at 7000 ft, usually riding upwards of 8 or 9 k, sometimes climbing to 10. If you're at seven, i'd go ONE size leaner on the main jet. the idle you might not even need to change. i'd try using the screw to lean it out. t
he carb might very well be a mess. rebuild instructions here. you might have to go 2 sizes leaner, but i think that's extreme. the altitude knobs i've only ever seen on a 90. i'm sure there's others with it. if i remember correctly, pull the knob 6500 feet or above, and it leans the main. i don't know how, i haven't been in one. Regardless, if the baseline tuning on the carb is good to 6500 feet (on the 90's anyway) then you might be able to do your tuning with the carb throttle needle/ metering rod. BTW the original 90's and 110's are BEASTS and will climb anything at a crawling speed/
someone has definitely 'hacked' a little bit on this bike. possibly not too bad (can you post an entire bike pic?), but like racerx said, WTF on that ground strap. it seems your previous owner was chasing an electrical gremlin. maybe it was intermittent spark (ha!) i don't know what he would want to ground the cylinder head and intake for… maybe the coil has a bad ground. maybe the ground to the points is bad. maybe it's shorted. this is where electrical stuff gets confusing, but i bet cleaning and gapping the points (or replacing and gapping) will do you a world of good. these bikes are generally very reliable. make sure you have a good connection at the battery connector. the two black wires there must have good contact or you won't get spark. If you hold the wire and it zaps you, you're close at least. if you have a multimeter, check for good ground at the coil, if you can reach in there, and the engine.
let us know where that gets you. i bet the bike will run really well when you sort those issues out.