The correct adjustment of the six brass screws, which act as a pivot and anchor the tremolo system, is level with each other so the bridge floats 1/16" off the body. These 6 screws are factory adjusted and you really should not have to adjust them at all. If it becomes necessary to adjust the 6 notched screws, make sure the guitar is detuned or you will ruin the knife-edge. Adjust the screws incrementally so the notches under the screw heads are fitted with the corresponding hole in the bridge. These holes serve as the knife-edge on which the tremolo unit rocks. Again, this is a very tricky adjustment and could ruin the knife-edge if done improperly.
The Bridge saddles should be low in the range of adjustment to keep the action low and leverage of the bridge in good working order. They should be adjusted so that the height of the string at the top of the 12th fret to the bottom of the string is 2/32".
If the tremolo bridge is not floating 1/16" off the body, remove the tremolo back plate. Adjust the claw screws about 1/4 turn at a time until the bridge floats perpendicular to and about 1/16th off the body. Tune to pitch and check, re-adjust until the bridge sits properly.
The intonation may be adjusted by moving the 6 phillips head screws facing the tail end of the guitar in and out with a phillips head screwdriver. Match the octave (fretted) note of all six strings with their corresponding 12th fret open harmonics by shortening or lengthening the strings with the adjusting screws.
Remember to tune and retune until the process is complete.
If you are unfamiliar with making these adjustments, we recommend that the guitar be taken to a qualified repair center.