Bicycle Mechanics - Threadless headset adjusting screw

I recently bought a Kuota Kredo that comes with a Carbon Fiber FSA threadless headset.
I wanted to play around with the stem height, and while unscrewing the top adjusting screw, found that I only had to turn it about 3 complete turns for it to come completely loose. That tells me that there is about 4mm of threads securing my headset: is this normal?? The expanding nut is about 30mm inside the fork tube... did my local bike shop put it together wrong, or is the screw they supplied too short??? (The screw is about 40mm long, and it starts to thread about 5mm inside the expander nut).

Am I worried for nothing? What's the proper number of turns that the adjusting screw should thread inside the expanding nut?

Alos, my LBS tightened the adjusting screw so much that the bars didn't move freely (you know, you pick up your bike from the floor and they move left to right - mine just stayed in the middle) - they weren't jammed, just not as freely moving as they should have been... didn't notice this until last week and have ridden about 300miles on the bike - should I be worried about bearings having suffered unduly?

Thanks for your help :)

It is alright that it only screws in only a bit. It is the stem itself that clamps to the steerer tube. As for the bearings, lossen off the bolts on the stem that connect it to the steerer, then loosen the top-cap/bolt untill your bork moves wildly around. Next,tighten the compression bolt untill there is no play at all. To check, put the bike on the ground, put on the front brake, and rock the bike back and forth. Put your hands on the bearing cups, and feel for movement of the fork, becase there is sometimes play in the fork itself, or the tire.

I was confused on how a threadless system worked and initially thought the same thing. Once you have an understanding of how it works, its quite simple to fiddle with.

...untill your bork moves wildly around.... Umm, I think this belongs in a different forum....