First question, what is the appropriate setting for the bypass screw, I cant seem to find any info on this.
Second question, will taller velocity stacks really improve performance?
1) In theory, the idle air bypass screws will start all shut. Then when you are finished adjusting your carbs, you can open up the screw on the cylinder that is flowing the lesser amount on each carb. This means that when you are done, only 2 are open.
I have seen no difference in idle quality or smoothness before or after equalizing the flow this way. So if you don't touch them, don't fret it.
2) If you had a dyno, you might be able to measure the difference, but it will be small. The difference between no stacks and some stacks is much more significant.
My suggestion is to start with a 60 idle jet. Most guys will tell you to run a 70, but I've never seen a DRLA that ever needed one. Years ago when Darren ran 48 DRLAs, he would drive around with 65s then swap in some 60s to pass aircare. It still ran good with the 60s, but we didn't have wide band O2 sensors back then to verify the A/F ratio.