Here's a good rule of thumb link for a bunch of different instruments:
http://www.stewmac.com/shop/Tools/Measuring_tools/1/String _Action_Gauge/Instructions/I-0670.html#details
For an electric, with the string capo at #3 I shoot for 0.002" gap or
less on #1. Because the strings are rounded, it is sometimes
difficult to tell for sure if your feeler gauge is really filling in a
gap, or pushing up on the string. It helps to actually pick the
string while you're sliding the tip of the feeler underneath; if the
string still rings out, there's still a gap larger than your feeler
gauge and you need to keep going on the nt slot. If the feeler
chokes the vibration, then it's closed.
I do find that if the string touches #1 while you're capo-ed at #3,
then there's a good chance you've gone too far on the nut slot and
you'll get buzzing up on that end.
After that, you need to check the amount of fret relief at #7 or #8
underneath a straightedge (with the strings tuned up to pitch).
Tweek the rod until you get to where you need to be.
THEN adjust your action (saddle height), which is very dependent on your playing style (heavy vs light right hand).
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