If it's too big of a carb, then it'll run too rich.To get that carb to work well, you'd have to lean out the mixture by buying smaller jets or making the engine breathe easier (header, cam, etc.). The 1.08 is ideal for that engine, plus if you put more performance parts on it, you can buy performance power valves and bigger jets (if you can find the right place). But, you can try to get it to work ok on your Jeep now.
The idle screw is right beside the throttle shaft. It has a hex head and a slit through it for a screwdriver. I just used my hands though. That may take care of the dieseling problem. Hopefully it's not already all the way out.
As far as Webers, I don't think I'd mess with them. I've heard Weber purposely make the carbs run rich, so you'd probably have to buy new jets for peak performance. And you'd also have to buy a fuel pressure regulator. With all that money invested in a Weber, I'd say just get a nice rebuilt 2100, and bolt it up. You'd even save money. I was actually looking into Weber after I was stumped with my carb, and if I were to get one, I'd buy the 34/34. The 36/36 is for performance engines, I think. But after reading about the Webers on Jeepz and other forums, I opted out.
My CJ7 has 2.73 and 31's (soon to be 3.54) and it gets up and goes pretty well with the 1.08, granted it is a block on wheels.
If you need any pics, just ask.