Yes I managed to fix the problem by drilling out the two holes that should have been drilled from the factory. (Shown in the pictures above) It idles great and light acceleration is responsive but I still seem to have a hesitation when I punch it off the line. I haven't played with the squirters yet so I suspect that this should fix the problem, though I will probably need to go with the big 50cc pump. As for the problem you described, I noticed that when I put the metering block gaskets from a Holley and Demon together they don't always have the same hole alignment. I'm not sure if I mismatched models when I did this, but it wouldn't hurt to check if all the holes in your gaskets line up with the holes in your carb. Also don't forget to check if there are holes that are completely covered by the gasket. It's possible that something is blocked off and you are not getting the right amount of fuel.
Another thing to try is adjusting the butterfly positions on both the primary and secondary side. My experience with Demons has taught me they can be very finicky if they are not set just right.