Start out at 1 ¼ ( manual specs) turn open and then go out until it starts hesitating and in till it hesitates , find your peek points.. And adjust accordingly.. The blue bottle is a oil tank reservoir and contains your 2 cycle oil.. If I was you I would change the oil out and use quicksilver… works great.. Assuming that you never have ran this motor.. It might be old ( the oil) hope this helps