Originally posted by rippo
my method: i had my LBS fit me.
and then when my knees started hurting, i adjusted it. 
little things can make a difference, so it really is a matter of getting it in the ballpark and then adjusting it based on how it feels.
one thing no one ever mentioned to me: when you adjust your seat height, you probably want to adjust the fore/aft position of your seat too. moving your seat up also moves it back, because of the angle of the seat tube.
i was getting a bit sore right above my knees, in the tendon area where my quads meet my knee (if i've got my anatomy right). so i raised my seat by 1/4" (.5 cm). immediately i started getting pain under my knee caps. then i did a little reading, found out about knee-over-pedal placement, and moved my seat forward by the same amount. this seems to be helping, although i may end up making another adjustment.
and now i want to fiddle with my stem because i'm a little bit closer to the bars. but that's a topic for another thread...
Thats what i'm doing right now,stem research.I need to raise by bars.