GT - there are two nuts on each needle valve assembly. The top nut moves the needle valve in and out, and as BBob states, it bottoms out at the bottom of the chamber. The lower nut is the packing nut. After you wind the packing material around the needle valve stem, the packing nut goes all the way in. I have found that when you install a newly packed valve assembly you need to screw the needle valve nut down first in order to get some play to begin screwing down the packing nut. After you get the packing nut started, back off the needle valve a bit so that you aren't putting pressure on the valve seat as you screw down the packing nut. Packing nut should screw down close to completely flush with the body of the rotor.
My recollection is that a starting point on the needle valve adjustment is 1/4 turn open, then further as necessary to get the proper balance between upstroke and downstroke.
JayJay