[font=trebuchet ms]Here is a brief overview from our own Dr. Simon.

The saddles are the pieces that the strings rest on. There's a small screw in a slot along either side of each saddle. This is where the intonation adjustment is done. When the screws have been loosened, the saddle can move towards the neck to sharpen the pitch, or away from the neck to flatten it. You need to adjust the saddle position so that the harmonic at the 12th fret matches the fretted note.

Since a FR trem is very sensitive to changes in string tension, you will need to keep re-tuning the strings and adjusting the spring tension in the cavity in the back of your guitar to keep the bridge in the same position.[/font]