As far as tuning, reset needles to factory, warm the car up for about a half tank of fuel, and then do the following:
Once you get the car warmed up, do some high speed passes, and keep leaning the high speed needle until you don't see any more improvement in top speed performance. This should be done with about a half tank of fuel. Then richen the needle up slightly to account for the engine running lean at the end of the tankful.
Once you have the high speed needle set, adjust the low speed needle until you get peak acceleration after the car sits at idle for 15 seconds (judging on wheelspin). One way to get this close is to drive the car around at race pace, and then bring it in and pinch (and hold) the fuel line near the carburetor until the engine dies. It should take between 3-5 seconds to die and only increase in RPMs slightly. If it takes longer to die lean the low speed needle 1 hour. If it dies in less than 3 seconds and/or doesn't increase in RPMs at all, richen the low speed needle 1 hour.
After setting the low speed needle, re-check to make sure that your high speed needle is still properly set. Often times the low speed needle being too rich will make it seem like the high speed needle is too rich, when it may actually be properly set or even too lean already. So make sure you are still getting near maximum top speed performance.
Once the high and low speed needles are set, set the car on a stand that allows all of the wheels to be off of the ground. Increase the idle setting (clockwise) as high as possible without allowing the wheels to move. If the wheels are already moving before you make any adjustments, decrease the idle (counter clockwise) until they stop moving.
The tuning advice above for the most part is a summary of this article (note that it is two pages):
http://www.rchobbies.org/cars_eng-tuning.htm
To break in:
Run the engine as normal (not rich) and just shut it down every 3 minutes of running, set the piston to bottom dead center, and allow the engine to cool to ambient air temperatures. Repeat this process for about 30-45 minutes of runtime.
EDIT: If you aren't confident in your tuning, run the engine just slightly rich (still very close to peak performance) to make sure it is getting enough lubrication. You don't want it to be overly rich or it will put strain on the engine internals, especially if it has a tight pinch.