Well, the bypass valve is installed. Now am waiting for some issues with my license to be resolved prior to starting the actual install.
Regarding the bypass install, I did what I listed above, with the feeler gauge and set screw. However, there were a few surprises:
1. The "hardest" part was taking the old one off. The 3 locking nylon nuts on the bypass itself would not come off. It seemed as though maybe they were stripped from whomever installed the bypass? Because only 1 came off; the other 2 spun but did not back off. Not sure... fortunately i was able to pull the b bypass + bracket off as one piece.
2. I determined the full "open" position by eyeballing when the blade was perpendicular to the bore. I set the bracket, tightened it down, then backed out each bolt one at a time and applied a small amount of threadlocker (per Tony's suggestion).
3. I used my method of adjusting the bypass.
I took a few videos I plan to upload to youtube.
My only concern is that when the bypass is subjected to vacuum, it opens, and the lever touches the little "bubble" on the bracket as it comes to the fully actuated position. It is hard to tell if it is stopping before the point of full actuation or not. If it was physically stopping before the valve is fully actuated, I could see that putting some stress on the valve long-term. But if it is stopping before full actuation it is only very, very slight, as the lever touches the "bubble"just as the blade is fully open in the bore. So it would only be on the order of millimeters in terms of the difference.
It seemed that from the factory the bore was potentially open a little less than I currently have it. So am contemplating loosening everything up and shifting the whole bracket forward (thereby avoiding contact between the lever and the bubble on the bracket) but not having the bore as "open" when subjected to vacuum.
Probably over thinking this....
Edited. Here's what it looks like in action with vacuum drawn and released. First one is bypass, second is blade.
As it draws the bypass open you can hear a click as the rod contacts the bump on the bracket. This is really close to the point at which it is actuated completely (shortest position of the rod).