Here's a few more things that I learned during my recent banjo setup:
To check the bow in the neck: The desired amount of bow is equal to somewhere between 1/64" and 1/32", or about the thickness of a heavy gauge fourth string. This distance is measured from the top of the 7th fret to a straight line going between the tops of the 1st and 22nd frets. You need the bow so strings don't buzz. If neneeded the truss rod can be adjusted. Go easy. some older truss rods apparently have a reverse thread.
Normal string height, or action, is about 1/8" above the 12th fret and 9/64" above the 22nd fret as measured from the top of each fret to the center of the strings. generally speaking you want to correct this height by selecting the proper bridge height. For small adjustments you can adjust the lower coordinator rod but this is usually not advised as it puts pressure on the rim and may effect the tone. More to come.
