It seems like no matter what I set my action at, I am disappointed in the sound of my basses. I can't stand a huge amount of clank, but I hate the sterile sound and unplayable qualities of higher action. I just can't seem to find the right balance. Am I the only one? Or have you goes gone through this phase before finding the holy grail of action?
If you're getting too much clack with a low action, you might want to take out some of the upper range frequencies. I play with a low action and I'll sometimes tap the strings against the fretboard with my fingertips; to avoid it sounding too harsh and clacky I'll roll down the upper mids at about 1kHz. IMO that's where the bulk of that harsh "clacky" sound is at. Just an idea.
IMO your bass should be set up to where you can play it smoothly and easily with the action at the appropiate height for the amount of force your fretting hand puts on the strings. If you have a light touch you can have lower action, a heavier hand needs higher action. Tone should be shaped via pickup selection and height, and then your amp/cab.
Pbass's post is a good one, one the Kjung will agree with with the whole 1k upper mid clank lol