One cable pulls the butterflies open and the other helps pull them shut,although they are spring loaded. On the throttle bodies,one is adjustable the other is not-if I remember correctly.You should have like 2-3mm of play at the grip,they can be adjusted at the handlebar as well,which you know. I highly doubt that is your idle problem because when the flies are shut the cable really does nothing then,if they were staying open then yea,the cable adjustment could be the problem.There is an adjuster screw for the high idle lever and obviously the thumb screw for normal adjustment. The throttle position sensor controls your air/fuel mixture which can lead to alot of things,but I'd say since your bike doesn't want to idle and has poor fuel mileage,I'd say that's the culprit. If you pop the cover off you will see two screws,loosen them and turn the tps-you will hear the motor smooth out or get worse,it's hard to get it perfect,but you can get close by listening and checking the plugs,this is where the Colortune plug comes in handy!!! Also,too much fuel pressure can make it run rich as well. My bike ran too rich when I bought it and thru trial and error and messing around I got it running pretty good. I just came in from a 30 mile cruise running 2 up at 60-65 mph and the computer was showing 40mpg(without that crappy ethanol mixed gas).Just be patient,read and ask questions,haha!! Here's a great site if you haven't already seen it-
http://www.kz1300.com/tech.html There is a wealth of info on there.