To install a new one, just loosen the lock nut and unscrew the pin. You will have to angle it a bit due to the limited clearance between the pump and oil filter housing. When you install the new pin, stop when you feel the pin make contact, then adjust from there.
Here is what the 617 engine service manual has to say about adjustment:
"Loosen the counter nut. Adjust damper at idle speed, screwing damper in until transverse engine vibrations have been remedied. Then tighten counter nut to 20-25 Nm."
My personal experience suggests that better results are obtained with the engine at operating temperature, idling in "drive." If the pin is screwed in too much, the engine will be hard to start. So screw it in just enough to minimize the vibration, then stop.