There is an old thread on supraforums where Dean Marcum offers some insight on the FPD. I have the Cole's notes below, or you can follow the link yourself
http://www.supraforums.com/forum/showthread.php?t=249037
Here's the summary....
The screw is there to pre-load the dampner spring. Easiest way to improve flow, marginally, is to run the banjo bolt from a non-turbo 7M (the N/A motor does not have a dampner).
I have never seen a "proper way" to set the screw. However, after cutting one of the dampners open, if you have the screw all the way in it does restrict fuel flow into the rail (not a good thing).
When you did the autopsy on the dampener you had. Did it look like you could do any damage to the unit if the screw was fully installed. My aim is to count the number of turn in to full, then back out by 50% and try there for a few days.
No damage to the unit. It just limits the amount of travel of the internal "plate" against the spring. Kind of like a fuel pressure regulator backwards.
The dampner should never leak--with or without the screw in place. If it leaks then it is damaged and should be replaced. There should be no damage by replacing the screw.