Thanks Pedalcrazy! I will pull the carb and all other pieces to ensure I have everything correct. On another note, when I shut the bike off, after a few seconds I suddenly get a large amount of fuel spewing out of the carb. I'm assuming a stuck float?

If the leak is coming out the bottom hose on the carb then that's from either the floats sticking or the inlet needle and seat dirty or needing replaced. You Should use only Mikuni brass for rebuilding carbs. After market rebuild kits have questionable brass. Keyster is the name of the kits I have used. I believe they are made in Japan and seem good. But I still use Mikuni parts when available. Summit Racing on line is where I get Mikuni jets and parts.  If the fuel is leaking out anywhere other than the bottom drain tube then you've got other problems!

Thanks again Pedalcrazy.  Problem is, I don't know where the leak is coming from.  It leaked after I shut it off and went in for the evening so I will need to watch next time I fire it up.  I tore the carb back out and cleaned it as good as I could.  All orifices are clean using air to blow them out seems to indicate no issued.  I will need to look into the jets issue. Not my strong suit for sure but I will track the one's you discussed down.  I took a photo of the gasket between the reed valve box and the black plastic spacer thing.  It shows the gasket below the reed box cylinder where the black plastic part connects. Do you think this somewhat deformed gasket could be the issue of the high idle?  I checked for warping and with a straight edge didn't see any warpage. 
I have a small tear in my float chamber gasket. Its the piece that surrounds small inlet hole inside the bowl.  Is that an issue? A new gasket is $20 on Partzilla! Oy!

Please see the photo attached to this post

Thanks for the tips. I followed your information and looked at the diagrams on Partzilla.  Everything looks correct.  Please see the post I sent addressed to Pedacrazy.  I am in a bit over my head here but trying my best. I really appreciate all of the expert advise you guys send.  I provided a pic to your reply as well. Please let me know if you think this gasket is an issue the way it seems to hang down.

Please excuse my ignorance, but would anyone happen to have the part number for the inlet needle? I'm looking on partzilla and it doesnt seem to be listed and I dont know what it looks like or where to look.

Two things:
First, you might try flipping the gasket around this way and that way. I think it's supposed to be symmetric, but it might fit better this way or that way better than it does now.
Secondly, inlet valve assembly is parts #2 and #3 here:
www.partzilla.com/catalog/yamaha/motorcycle/1973/rt3/carburetor

There is no ignorance in your questions; we have all been there before. Some of us have just learned more from our many mistakes than others who have yet to make those mistakes.

Got it thanks so much.. I just placed that order with Partzilla. As far as the gasket, are you talking about the gasket I took a pic of?

First thought I have is might be normal if it wasn't leaking obviously before parking.

On these old bikes you must always, always, ALWAYS shut off the petcock when parked.  And check petcock to make sure it shuts off.

Otherwise it's common for float valve to sleep enough for gas to overflow and sometimes fill engine with fuel. Bitch to start bike if that happens.

Mark, I had the petcock turned off so I know it didnt come from there.  When I purchased the bike, the guy said it leaks fuel when you shut it off. I started it and turned it off a couple of times an nothing.  I put the thing back together, parked it in the garage and woke up to a massive fuel smell in my garage so I know it leaked from somewhere, just not sure where.  I am concerned that the gasket I posed a picture is causing a leak which is causing the high idle.  One suggestion was to turn it this way and that way, but I cant get it off without breaking it so that's an issue in terms of testing other positions with the gasket. 

Okay, as I said, have you checked to make sure petcock actually shuts off?

Think about it. If petcock was truly off, where did all the fuel come from?  Either something else like the tank has a leak or all that could leak is the couple ounces in the float bowl. And that would not be the float valve leaking.