I've always heard that you set the floats to where the fuel just starts to pour out of the side holes (in your case you can see without removing anything). If you have the level too high, it can flood around corners, hard braking, etc. where the fuel can slosh. If you have it too low, under hard acceleration and/or cornering you can run out of fuel. This is just what i've been taught.
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2005 Suzuki Hayabusa GSX1300-R
1980 Ford Thunderbird - 255 V8
ported heads, 5.0L ported stock headers, O.R. H-pipe and Flowmaster 2-chambers, dual roller timing chain
hi-po Mack Truck hood emblem
1985 Mustang GT 5.0L T5, F-303, GT40p, headers, off-road h, flowmasters, MSD stuff, etc.
Sold 02/06/04 
1989 Mustang GT ET: 13.304@102.29 mph (5-24-03)
Sold - 1998 Mustang Cobra coupe, 1/4 mile - street tires: 13.843@103.41 (bone stock)
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