The circled adjuster. Is used to set the ball against push rod. I will have to re-read procedure in the manual. Its been quite a long time since I messed w all that. Guys tend to make it more difficult than it really is though. Read the manual. It has pictures and everything.
I think you will loosen nut. Then turn it out a bit. then turn it back in just until you feel (resistance) thats the ball contacting the push rod.
run the handle bar adjuster "3/4 of the way in" this will give you the most "fine tweaking" (adjustment in the event cable stretches over time) after the case end is adjusted.
On the case end of the cable. Turn it so cable end gets closer to case. pull clutch lever, and see how it feels. In the end it will have approx 1/2 inch of free play before you feel resistance in clutch actuation. The 1/2 inch of free play lets you know the cable isnt so tight that its pulling the clutch without your hand on it.
Start turning the adjuster nut on the case end of cable to raise cable sheath. A turn at a time. Squeeze lever, feel the action. If you get to the point it "pops" when squeezed...youve gone too far. You want maximum clutch linkage actuation without going so far as to "pop" the 3 ball thingy into the next set of divots.
then you will turn your attention to the cable adjustment above. If you dont have the 1/2 inch of free play run the adjuster in. If you have more than 1/2 inch turn it out a bit at a time. squeezing clutch lever. If it pops, youve gone too far. re-adjust case end of cable to give yourself a bit less throw.
See clear as mud.