Ok, idling fine now. Have no throttle seeing there's nothing hooked from my throttle to my choke. That is easy enough to figure out. Have the thing idling nice and low and it still grabs the belt instantly. How do I adjust this?
It doesn't appear that carburetor has a choke. What you are actually referring to is the governor arm. (that thing covered in oil

)
The post here will help you with the correct governor/throttle linkage:
http://www.diygokarts.com/vb/showpost.php?p=336354&postcount=21
Your definition of a low idle might be different from someone elses. But if you really have the engine idling
low (e.g. < 2000 rpm) and the clutch
still engages, then the problem must lie with the clutch (cvt/torque converter).
Fabroman mentioned that the belt might be too small, have you checked that the belt is the correct length? It
looks like that torque converter uses an
asymmetrical belt (one side of the driver pulley is at an angle) - it may be the wrong belt, or could possibly be installed the wrong way around.
It is the
driver pulley (the part that sits directly on the engine shaft) that engages/disengages the belt. (not the
driven - which is the side that the chain is connected on)
You need to check for a brass bushing on the driver pulley, I think you are suppose to have one there. The belt sits directly on top of that bushing during idle. You may need to take the belt off and make sure that this bushing is clean and moves freely.
Try propping up the go kart so the wheels move freely or disconnect the chain and (while it is idling) watch the driver pulley and see what its doing. Does it expand out toward the belt and grab it?
If you have made sure that the belt is the correct one and the bushing etc is clean, then you should disassemble the driver pulley and inspect the springs to make sure they are properly installed and not worn or stretched out. You will want to take some pictures of that and post them here if you make it to this point.