There's a couple of other things you could try. Go ahead and adjust the lever to the bottom of the plate like the picture shows.
Is your AFC housin pushed forward at all? Push it all the way if you can and try that.
Also, try turning the star wheel in the AFC toward the engine to add fuel at the low end (if you haven't alread). Low end smoke will increase, but at least you may get it to start and idle.
One other not-common adjustment is to remove the protective cap on the back of the AFC diaphram housing. There's an adjustment screw with a lock nut on it (as I remember, its been 3 or 4 years since I've done mine). Loosen the lock nut and turn the screw in about a half turn - no more than about a half or a quarter turn for each adjustment. This adjusts the preload on the diaphram that moves the AFC arm as boost builds. Turning the screw in moves the arm forward a bit, if my memory is correct.
All this should help you determine if its simply a matter of low-end fueling or something else. I suspect you're getting it to start my moving the arm up because there just isn't enough to get it to run when the governor arm is down at the bottom of the plate. One or more of these adjustments should change that.
-Jay