Sidepull brake adjustment: (c) Copyright 2006 Community Exchange Bike School.
All Rights Reserved. ExchangeCycleTours.org
1.  Set lever position and reach (Optional) Last Updated: 9:45pm, 11/08/2006.
To a large extent, the position of the brake levers is a matter of personal preference.  However, the following
procedure should be done if the levers are grossly out of position.
Fig. 1 Loosen the mounting bolt/nut, position lever on handlebar and set at 45 degrees to the ground.

Tighten the mounting hardware.
Fig. 2
Fig. 3 Use the reach adjustment screw to set the distance between the lever and the handlebar to allow a comfortable reach. Turning it clockwise will move the lever closer to the bar.
(c) Copyright 2006 Community Exchange Bike School.
All Rights Reserved. ExchangeCycleTours.org
Last Updated: 9:45pm, 11/08/2006.
2.  Adjust Brake Caliper Stack-up Tension/Play.
This ensures that the brake arms are able to move freely, and with minimal wobble.
Fig. 4
Loosen the locknut while holding the retaining nut with an offset brake wrench (or any wrench of the correct size thin enough to fit between the caliper and your locknut wrench, as shown).
 
Fig. 5 Examples of the various types of brake wrenches. The two on the right are offset brake wrenches and are useful for getting into tight spaces.
Add picture of offset brake wrenches here
Fig. 6 Loosen or tighten the retaining nut so it pulls the caliper arms together while still allowing them to pivot freely.
Fig. 7
Holding the retaining nut with the thin brake wrench, tighten the locknut with a box-end wrech.
Check that the brake arms move freely with a minimum of play.
3. Adjust brake pad alignment.
The brake pads must line up with the rim in two directions, and have about 1mm of toe-in, i.e. the leading
edge of the pad should be about 1mm closer to the rim than the trailing edge.
Fig. 8 Brake pads should be adjusted one at a time. Loosen the brake pad mounting bolt just enough to allow the pad to move.
  Keeping your wrench on the brake pad mounting bolt, manipulate the pad with your other hand.
Fig. 9 Viewed from the side, each pad should be parallel to the curve of the rim.
Make gradual adjustments and check by squeezing the brake lever or calipers by hand and watching where the pads hit the rim.
Fig. 10 The pads must also be centered vertically on the braking surface of the rim.
(c) Copyright 2006 Community Exchange Bike School.
All Rights Reserved. ExchangeCycleTours.org
Last Updated: 9:45pm, 11/08/2006.
Fig. 11
A properly toed in pad should have about 1mm of space between the rim and the rear edge of the pad at the moment the leading edge of the pad contacts the rim.
Fig. 12 For brake pads without convex/concave washers or other built-in adjustment for toe-in, use an adjustable wrench or toe-in adjustment wrench to grip and bend the caliper end to set toe-in.
Fig. 13 A toe-in wrench.
(Photo Courtecy Park Tools USA)
(c) Copyright 2006 Community Exchange Bike School.
All Rights Reserved. ExchangeCycleTours.org
Last Updated: 9:45pm, 11/08/2006.
4. Centering the brake caliper.
For a firm feel at the lever, and to make sure one pad doesn't drag on the rim as you ride, brakes need to be
centered so that both pads contact the rim at the same time.
Fig. 14
On sidepull brakes, centering is achieved by rotating the whole brake on the mounting bolt.
Fig. 15
Loosen the mounting nut until the brake assembly is able to rotate.  Using your hands or an appropriate wrench (offset brake wrench or otherwise), rotate the brake assembly so the pads are at equal distances from the rim.
Fig. 16
Adjusting by hand.
(c) Copyright 2006 Community Exchange Bike School.
All Rights Reserved. ExchangeCycleTours.org
Last Updated: 9:45pm, 11/08/2006.
Fig. 17
Sometimes the brake spring will prevent you from being able to center the brake by hand. In this case you need to use a two-pronged offset brake wrench.  This tool hooks into the spring loops.
Fig. 17a