To get the elevation numbers in correct position with the apperature height, if the apperature is cranked all the way down into the sight base, should the elevation number on the knob on the left be at the # 1 hash mark?  I was playing with mine and it came out cause I cranked it up to high, so I want to put it on the correct setting.

The correct setting depends on how the rifle zeros.  See the M14 battle sight zero that is pinned at the top of the forum.