Amigos,
Some good news: finally figured this s%$* out over the weekend.
Correct adjustment procedure, according to manual is: Load rear end with 120kg. Downward deflection in frame and therefore controller will cause upward movement in controller arm (towards fill setting). However, upon rest, the 4mm hole in the controller arm should align perfectly with the 4mm hole in the controller unit. Eh voila.
Mike, thanks for your support mate. As soon as Ibanking bonus comes around, Ill give you a shout for a personal spin around some race track somewhere... :-)
Cheers
farrukh