Does anyone know if the setting 1 means softer or harder? I'm assuming softer but would like to know for sure. This perhaps is the problem when you don't have an owners manual.

 

yep, softer 1, hardest 5

 

Measure the bottom edge of your rear fender to the floor, with bike no one one the bike, then sit on the bike and have someone take the same measurement. Adjust your shocks till the empty and loaded measurement are about 1" different. This sets your sag.