I usually adjust them pretty tight. Tight enough you can turn the wheel but not loose enough it will coast much. The reason is because the rear braes have a LOT to do with the pedal height. The less they have to move to engage the drum, the higher the pedal will be. I don't mind if I even smell a little "hot" from the rear brakes on the first test drive or two, because I know they will have the least space possible between the shoes and drums. Of course you don't want them too tight, because they'll tend to heat WAY up and then just lock down. It's a balancing act to get them "just right".
