This is one procedure that is a bit foggy when it comes to what the manual states and what I have done in the past.
The manual asks to remove a exaust tappet cover and rotate the engine in reverse direction until the exaust valve begins to operate. With the adjusting nut loose, screw the adjusting screw down until the screw touches the cam chain tensioner and tighten the adjusting nut.
If you can't do that procedure, then just turn the adjusting screw in until it touches the cam chain tensioner.
From experience, the best thing to do is to install a new cam chain when rebuilding the engine. I did not replace the chain when I did mine and I visually adjusted the chain to give the chain about 1/8 inch of movement (looking at the cam chain through the removed cam chain cover at the top of the engine)
If you hear the chain while the engine is running, you have some adjustment room. If you still hear the chain, it should be replaced.
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