The CNS carb is a bit different from the older NT or Speed carb. To start out it has 3 jets instead of just one, and doesnt have a real choke....
On the choke, it is not a choke, its an extra enrichment jet. When you move the lever so it pulls the "Choke" cable it lifts the plunger which opens the enrichment jet and allows fuel to flow from the jet. Pulling the cable opens the jet, creates the "choke" condition by richening the mix with extra gas.
The white spacer is just that, a spacer, it is not the seal. The spacer is there just clamp and hold the carb in place. In the throat of the carb there is a black rubber piece, THAT is the seal that stops the air leaks. It is not a simple o-ring, it is formed to fit over the end of the intake pipe and seat inside the carb throat. You need to get the carb all the way down the intake pipe and seat it into that black rubber gasket to seal the carb. You shouldnt need any sealer in my experience. Just push the carb back until it bottoms out on the intake and then wiggle it around a bit until you feel it seat that last couple of mm into the black gasket, then while firmly pressing the carb in place tighten up the screw on the neck of the carb. The screw on my CNS carb was cheap and wore down quick, I couldnt grab it very well with any screwdriver. I replaced it with a better screw (and nut) which tightens down much better for me. (it dont have to be the same size/thread screw, just get a similar size screw and nut that fits in the hole and it will work)
I had carb leaks at first before I familiarized myself with the actual carb seal, since then I use the above mounting method with the carb and never had any leaks since. I have had the carb on and off plenty of times...
If your motor will only run when there is slack in your choke cable (not pulled) then I wouldnt worry about it, that is the normal position. If you have to pull the choke cable to get her to run then you are probably running lean as suggested, since the extra gas from the enrichment jet gets things rolling.
Over the past few months I have had this CNS carb tuned so many different ways, sometimes it would idle with the choke on, sometimes not. I never had much use for the choke until the weather turned cold, then it helped smooth out my ride for the first little bit before the motor warmed up.