ChuckyBoy,
Something is not right if you can only feel damping on one side with the bike on the stand, especially with the screw turned all the way in. It is and should be noticeable flicking the handlebars back and forth with the front wheel off the ground.
I'm assuming that unit was installed properly, and that the steering locks are hit well before the WER reaches it's internal limit. If the bike was ridden at all with the WER hitting it's internal limits, it may have messed up the unit.
As far as the adjustment, it's going to depend on your speed, and how tight/twisty the trail is. At high-speed, balls out straightaways, you could probably run at 0-1/2 a turn out. In super tight, twisty, 1st-2nd gear stuff, you probably want to run 1-1.5 turns out. If I set the screw all the way in (most damping), I'd have a real hard time moving the bars back and forth in the slow twisty stuff. I can't imagine riding slow at the full setting. It would wear you out, and be a little dangerous because you'd not be able to flick the bars back and forth as quickly as you'd need to.