push your finger on the first and last fret at the same time....if the string is more than a mm above the board from the 7-9th frets, your neck has too much relief and the truss should be tightened a quarter of a turn (or until you're happy)....that's assuming your bridge isn't set up all crazy....then you adjust the bridge saddles from there....and obviously if the height is under a mm and is buzzing you need to give the truss more relief and then adjust the saddles accordingly....at least that's what I learned from Jerzy Drozd....anyone can correct me if I'm wrong but it's been working pretty great on my ACs
Jerzy and I have actually spoken about setups in the past as well. He's definitely great at it. However, a couple things you left off... at least according to the way I like to do it... lemme just do the whole thing here...
ALWAYS do relief first (as you said, but a bit more info here)...
If you don't have enough relief (too flat, or maybe even a back bow) you need to loosen the truss rod. Just turn it a 1/4 or so counter-clockwise wait a bit, and recheck. If you have too much relief, you need to tighten the rod (clockwise) BUT, at least I don't like to do that under string tension, and I don't want to keep loosening and re-tuning the strings all the time, so the shortcut is to brace the body at the heel between your legs, grab the headstock with one hand, and literally pull back on it JUST enough to see the strings move slightly towards the board. Hold it that way while tightening the rod, and slowly release. I've had fantastic results this way... VERY few "re-adjusts" after settling time.
Next is saddle height, just as you said. To taste.
Finally, don't forget intonation, and this is always done last. If you're changing action a fair amount, you'll probably need to check/adjust intonation. Tune the open string to pitch. Then check the tuning while fretting at the 12th fret. If it's "sharp", move the saddle back away from the nut, retune, recheck. If it's flat, move the saddle forward towards the nut, retune, recheck. You can always move it away from the nut without doing anything special, but when you're moving it towards the nut, sometimes string tension prevents it from moving as far as you've allowed with the screw (in other words, the screw simply backs out instead of the saddle moving), so you literally need to kinda' bump the screwdriver to re-seat the screw and "pop" the saddle forward the full adjustment amount. When all strings are at pitch when open and fretted at the 12th, you're done. You'll typically see the pattern of the higher string saddles being more towards the nut, and the lower string saddles more away from the nut, and if a string is tapered, that bumps its adjustment towards the nut.
Then it's like magic.
