Let us not give conflicting advise on how to adjust a South bend spindle.
there is only one way, by the SBL instructions.
 
The S series lathe headstocks with bronze sleeve bearings have an expander,
in the parts list they are called bearing locks, remember they are locks, not bearing adjusters.
Pay close attention to the order of the loosening and tightening of the locks (expanders)
and the pinch bolts(9N-10K). All S series lathes 10 inch and larger with bronze sleeve bearings,
have bearing caps with bolts.
 
With your spindle oil filmed and fully seated and the rear take-up nut loose:
 
1-Loosen the bearing lock screws. This may allow the bearings to touch on the spindle,
do not rotate the spindle.
2-Remove the bolts on the pinch clamps(9N-10K) or remove the bolts on bearing caps(10" and larger) 
3-Open the pinch clamp slightly by using a proper size rod that will fit in the upper part of the pinch clamp as a lever(9N-10K only)
4-Remove the shim packs, and add at least a .002 shim to each side. 
5-Reinstall the shims and the pinch bolts or cap bolts and tighten bolts.
6-Tighten the bearing lock screws(very important, do not over tighten) and check to see if the spindle will turn freely, don't force, it should spin easy.
If it dose not repeat at step 1 until it does.
7-If you can not reach this point something is wrong with the bearing locks,
they may be damaged in such a way as to not allow the bearing to expand against
the headstock spindle bore, remove the spindle and inspect the bearings and locks for proper fit.
8-If you do reach a point where the spindle turns freely, repeat from step 1,
for each bearing individually as a separate operation until step 4 where you will remove a .002 shim and replace it with a .001 shim. After step 6 you will perform a lift test and repeat from step one as needed
to end up with both bearings in spec by the lift test. Alternate between bearings removing
shims and doing the lift test, move towards the clearance spec with both clamps or caps tightend. 
 
Steve Wells