The nut at the top adjusts preload on the spring. By turning the nut so that the spring is compressed further, there is no difference in static height of the bike, but you will notice less sag when you sit on the bike and a stiffer ride. The KLE (from memory) is set for a 66kg rider for Aus delivery. If you bump it up to the third or fourth setting it will probably give you a better ride sans luggage. If you are carrying additional weight then you may have to investigate a heavier rear spring. The "dog-bones" will raise the rear ride height, but will not increase the suspension travel.
The nut is adjusted with a special spanner (the local bike shop will probably give you one as the always seem to have a number of these spare), but be warned, they are a bastage to get to and you will likely skin your knuckles in the process (I did - twice!)
Last edited by Jameseye; 26 Oct 2008 at 12:57.
Reason: add bits..