Just remembered about this on fenders website

http://www.mrgearhead.com/

there is a .pdf about setting up axes which says:

Quote from fender:

"measure distance between bottom of strings and top of the 17th fret. Adjust bridge saddles or if your saddles are preset, the bridge height adjustment screws, to
approximately 4/64". Experiment with the height until the
desired sound and feel is achieved."