Fender also has set-up guides posted in the support section of their website
http://fender.com/support/stratocaster_setup_guide.php
Stratocaster® Setup Guide
STRATOCASTER® ADJUSTMENT AND CARE
The following setup procedures and specifications are for your Stratocaster as equipped with the strings that come on the instrument as standard equipment from the factory. If you plan to change string gauges, you may need to adjust the specs somewhat to compensate for the changes in string sizes. Modifications of the specs may also be made (within limited parameters) to adjust for your individual playing style or application (i.e., how hard you pick, strum or fret the guitar).
Note: These are minimum specifications that are meant as a guide; they should not be construed as hard and fast rules, as we realize that every player's subjective requirements often differ.
TOOLS NEEDED
Set of automotive feeler gauges (.002-.025) (0.05–1 mm)
6" (150 mm) ruler (with 1/32" and 1/64" increments) (0.5 mm increments)
Light machine oil (3-in-1, toy locomotive or gun oil)
Phillips screwdriver
Electronic tuner
Wire cutters
Peg winder
Polish and cloth
STRINGS
For strings to stay in tune, they should be changed regularly. Strings that have lost their integrity (worn where pressed against the fret) or have become oxidized, rusty and dirty will not return to pitch properly. To check if your strings need changing, run a finger underneath the string and feel for dirt, rust or flat spots. If you find any of these, you should change your strings.
No matter what gauge of strings you use, for the best tuning stability we recommend using Fender Bullet® strings. The patented bullet-end is specifically designed for all styles of tremolo use, from extreme dives to smooth vibrato passages. The design allows the string to travel freely in the bridge block channel during tremolo use and return afterwards to its original position, seated snugly in the bridge block. This is accomplished by eliminating the extra string wrap and the ball-end (the ball end doesn't fit properly into the string channel). The bullet end has been shaped and sized to match the design of the bridge block channel.
Make sure to stretch your strings properly. After you've installed and tuned a new set, hold the strings at the first fret and hook your fingers under each string, one at a time, and tug lightly, moving your hand from the bridge to the neck. Re-tune and repeat several times.
TUNING KEYS
How you wind the strings onto the pegs is very important, whether you're using locking, standard or vintage tuning keys. Start by loading all the strings through the bridge and then loading them onto the keys as follows:
Locking tuning keys. Picture the headcap of the neck as the face of a clock, with the top being 12:00 and the nut being 6:00. Line the six tuning machines so that the first string keyhole is set at 1:00, the second at 2:00, the third and fourth at 3:00, the fifth at 4:00, and the sixth at 5:00. Pull the strings through tautly and tighten the thumb wheel, locking the string in. Now tune to pitch.
Standard keys. To reduce string slippage at the tuning key, we recommend using a tie technique. This is done by pulling the string through the keyhole and then pulling it clockwise underneath and back over itself; creating a knot. You'll need to leave a bit of slack for the first string so you have at least two or three winds around the post. As you progress to the sixth string, you'll reduce the amount of slack and the number of winds around the keys.
Vintage keys. For these, you'll want to pre-cut the strings to achieve the proper length and desired amount of winds. Pull the sixth string (tautly, remember) to the fourth key and cut it. Pull the fifth string to the third key and cut it. Pull the fourth string between the second and first keys and cut it. Pull the third string nearly to the top of the headcap and cut it. Pull the second string about a 1/2" (13 mm) past the headcap and cut it. Finally, pull the first string 1 1/2" (38 mm) past the top of the headcap and cut it. Insert into the center hole in the tuning key, bend and crimp to a 90-degree angle, and wind neatly in a downward pattern, being carefull to prevent overlapping of the strings.
If your tuning keys have a screw on the end of the button, check the tightness of the screw. This controls the tension of the gears inside the tuning keys. Do not over-tighten these screws. They should be "finger-tight." This is very important, especially on locking tuners.
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TREMOLO
Stratocaster guitars can have four distinctive types of bridges. The most well-known bridge is the vintage-style "synchronized" tremolo. The other three are the American Series bridge, which is a modern-day two-pivot bridge; the non-tremolo hardtail bridge; and a locking tremolo, such as the American Deluxe or Floyd Rose® locking tremolos. If you have a non-tremolo "hardtail" bridge, proceed to "Intonation (Roughing it out)." If you have a locking tremolo bridge, click here.
First, remove the tremolo back cover. Check your tuning. For a vintage-style tremolo bridge, a great way to enhance its performance is to pull the bridge back flush with the body using the tremolo arm. Then loosen all six screws located at the front edge of the bridge plate, raising them so that they all measure approximately 1/16" (1.6 mm) above the top of the bridge plate. Then tighten the two outside screws back down until they're flush with the top of the bridge plate. The bridge will now pivot on the outside screws, leaving the four inside screws in place for bridge stability. For a two-pivot model such as the American Series bridge, use your tremolo arm to pull the bridge back flush with the body and adjust the two pivot screws to the point where the tremolo plate sits entirely flush at the body (not lifted at the front or back of the plate).
Allowing the bridge to float freely (no tension on the tremolo arm) using the claw screws in the tremolo cavity, adjust the bridge to your desired angle—Fender spec is a 1/8" (3.2 mm) gap at rear of bridge. You'll need to retune periodically to get the right balance between the strings and the springs. If you prefer a bridge flush to the body, adjust spring tension to equal string tension, while the bridge rests on the body (you may want to put an extra 1/2 turn to each claw screw to ensure that the bridge remains flush to the body during string bends). Caution: Do not over-tighten the springs, as this can put unnecessary tension on the arm during tremolo use. Finally, you may wish to apply a small dab of Chapstick® or Vaseline® at the pivot contact points of the bridge for very smooth operation.
INTONATION (ROUGHING IT OUT)
You can preset the basic intonation of your guitar by taking a tape measure and measuring from the inside of the nut to the center of the 12th fret (the fret wire itself; not the fingerboard). Double that measurement to find the scale length of your guitar. Adjust the first-string bridge saddle to this scale length, measuring from the inside of the nut to the center of the bridge saddle. Now adjust the distance of the second-string saddle back from the first saddle, using the gauge of the second string as a measurement. For example, If the second string is .011" (0.3 mm), you would move the second-string saddle back .011" (0.3 mm) from the first saddle. Move the third saddle back from the second saddle using the gauge of the third string as a measurement. The fourth-string saddle should be set parallel with the second-string saddle. Proceed with the fifth and sixth saddles with the same method used for strings two and three.