Simplified Setup Method
I've been setting up my own guitars since the mid 70's; this method gives me the quickest and most satisfactory results.
Note that no measurements are needed, adjustments are made based on how the guitar feels to you.
Do it the easy way, why fight it!
First, put a capo at the 7th fret and set your action at the bridge.
The reason for using the capo is, it allows you to accurately adjust the bridge for the high end of the neck.
Regardless of how much relief you have in the neck, it will hardly move from the 7th fret up when you adjust it later.
Once set, this is as low as the bridge can safely go without buzzing and fretting out in the high register,
and the minimum height it needs to be.
Second, move the capo down to the first fret.
The reason for moving the capo there is, it allows you to accurately set the neck relief whether the nut was cut properly or not.
If your action is higher than desired, that means you have too much relief for the action you're looking for.
Tighten the truss rod 1/4 turn per day until your guitar plays the way you like it.
If your action is too low or you have a back bow, loosen it accordingly.
Third, remove the capo and evaluate the nut.
Press each string down between the 3rd & 4th frets, and check the string clearance at the 1st fret.
What you're looking for is paper thin clearance.
If the distance is any more than that, have the nut looked at by a top tech.
I do not advise doing this yourself.
Nut work can be a black art, and for about $20 you can get it done right the first time.
Fourth, put on a new set of strings and set your intonation. Make a final evaluation of the action,
at this point the action is pretty low and I like to raise it a half turn at the bridge saddles. Enjoy!
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