Upon further inspection it appears that a sensor of some sort is dangling down underneath the gas tank. It is a double pronged piece of plastic with 2 wires coming out of it. I can see a mount for it but I was just running my bike so I want to wait for it to cool off before I remove the tank and put it back where it looks like it goes. Just adding that in there although I don't know if that would affect the idle.
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Since the bike is new to you, there are other things that should be checked. They can impact the idle speed and low RPM behavior. In addition to TLJimmy's suggestion, that is, the change in weather that comes this time of year, the idle speed can be also affected by the following items.
Clutch switch - Many TLs have had the clutch switch bypassed. Sometimes, because the switch failed, and jumpering the connectors was a "quick fix." Others have done it because they don't see the need to pull the clutch lever to start the engine. At any rate, if it is bypassed, and not done correctly, it can cause idle and starting problems because it affects the fueling decisions made by the ECM. You can learn about the details of the clutch switch circuit on http://www.wotid.com.
TPS (Throtte Position Sensor) & Thottle body balance - You are going to hear this from someone, sooner or later.
It is good practice to verify these two adjustments when you acquire any TL. They can both greatly influence the idle and low rpm performance. "The choke" - The lever (on the left switch pod) you referred to as the "choke" is not a choke at all. It is simply a fast idle lever. When activated, it opens the throttle body butterflies slightly. This is the same as opening the throttle twist grip slightly, so the RPMs should increase up to about 2000 rpm. Since you say yours had no affect on the engine speed, it needs to be investigated and adjusted.
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