Newbie Q - I had to disconnect the cable from the brake calipers to release the tension on my Shimano 600 brake levers when I replaced the handlebars.

1. I squeeze the pads against the rim and pull the cable end through the attaching bolt, but how taut do I pull it? With the open/closed position lever (that I open to remove the wheel) in what position?
2. How do I tighten the dome nut? Do I just tighten it with an 8mm wrench or socket and allow the cable to twist about 30-40 degrees from vertical?
3. After adjusting it I verify the lever feels good, fine tuning it if necessary using the adjuster where the cable sheath ends?
4. Finally, if necessary, I loosen the center mounting bolt, align the caliper so it's centered, and tighten?

Thanks

1. I hold the brakes where I want them to be when the brake isn't being pulled, and tighten it at that point. If you tighten it when it's against the rim, your brakes will always be on. (someone correct me if I'm wrong, I don't use the same brakes)
2. Pretty much, as long as it is secure I don't think the twisting will matter much.
3. Yup
4. And yup.

Yup