if you have thinner oil in dashpot, the piston will lift faster, so the carb(s) 'choke' will get relatively bigger momentarily than when you use thicker oil. what will happen is, when the choke is bigger the air speed across the choke decrease momentarily when you open the throttle, hence they will suck lesser fuel. i tried using ATF for my twin (not a 1200, but my 510), and black smoke appears. tried using monograde engine oil 40, black smoke appears even when the mix screw bottomed. then i tried just for fun to use no oil in the dash, the engine stutters heavily, a sign of too lean mix. for my application, sewing oil works best.
the dashpot oil acts as accelerator pump. they matters most just after you opened the throttle. they resist the piston movement so the choke become smaller so the air speed become faster (again momentarily),giving higher vacuum signal at the jet to suck more fuel.
a great link for SU (datsuns, not british)
http://www.jetlink.net/~okayfine/sutech.html