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
Fig. 18
If you're still having trouble centering the brake, you can try rotating the caliper and mounting bolt together.
First, make sure that the mounting nut is snug, but not fully tightened.
Then, turn your two-pronged wrench and mounting nut wrench together in the desired direction. The whole brake assembly will rotate.
Fig. 19
A good way to check that both pads are contacting at the same time is to give the wheel a spin and squeeze the lever gradually until one of the pads rubs the rim and stops the wheel (hold the lever still as soon as you detect contact).
 Then, squeeze the lever further and observe which pad continues to move toward the rim. If the right pad moves, the brake is too far to the right, if the left moves, it’s too far to the left. 
Fig. 20
(c) Copyright 2006 Community Exchange Bike School.
All Rights Reserved. ExchangeCycleTours.org
Last Updated: 9:45pm, 11/08/2006.
Fig. 21
Once the calipers are centered, hold the brake in place and tighten the mounting bolt.
Check the centering to make sure it did not go out of adjustment.
5. Lube cables and pivot points.
For brakes to work efficiently, the cables and pivots must be lubricated.
Fig. 22
If the brakes are equipped with a quick release, a lever that loosens the cable tension to allow the calipers to open partially, use it to create slack in the brake cable and unseat the housing from the cable stops.
 If there is no quick release, you may need to release the cable at the anchor bolt to create slack.
Fig. 23
Once the cable is unseated, slide the housing along it to expose the hidden sections. Apply a thin coat of oil (Tri-Flo works well).
Move the housing back into position and reseat the cable, close the quick release or reattach the cable.  Give the lever a few squeezes to distribute the oil in the housing.
Fig. 24
Apply a drop of oil to all pivot points. Wipe off any excess and be sure not to get any oil on the brake pads or rim.

 

(c) Copyright 2006 Community Exchange Bike School.
All Rights Reserved. ExchangeCycleTours.org
Last Updated: 9:45pm, 11/08/2006.
6. Squeeze the lever to seat the cable housing.
Before adjusting the brake cable, it's a good idea to give the lever a few squeezes to make sure all cable
housing is fully seated in the cable stops and barrel adjusters.
Fig. 25 At this point you should also do a visual inspection to make sure all housing is in place.
7. Set brake cable tension
The cable tension controls the distance between the brake pads and the rim. A cable that is set too tight will hold
the pads too close to the wheel causing them to rub the rim as you ride. A cable that is too loose results in brakes
that feel "soft" or are ineffective because the lever goes all the way to the handlebar before the brake engages.
Fig. 26   Loosen all barrel adjuster locknuts.
Completely screw in (clockwise) all barrel adjusters, then back them out (counterclockwise) one turn to allow room for fine tuning later.
Back out (counterclockwise) the brake lever barrel adjuster another 3-4 turns. (This will be tightened up later to provide brake pad clearance.)
(c) Copyright 2006 Community Exchange Bike School.
All Rights Reserved. ExchangeCycleTours.org
Last Updated: 9:45pm, 11/08/2006.
Fig. 27
Loosen the brake cable pinch bolt on the caliper enough to free the cable.
Fig. 28
Squeeze the brake pads until they touch the rim either with one hand, or using a third-hand tool. 
Fig. 29
Pull brake cable tight by hand and tighten pinch bolt.
Double check that all cable housings are seated fully.
Let go of the pads, or release the third-hand tool, and give the lever a firm squeeze.
Fig. 31
At this point, small adjustments can be made with the barrel adjusters (be sure to lock the barrel locknuts to preserve your adjustment settings).
It's important that the barrel adjuster has no more than a few (3 for example) threads exposed. This allows for future adjustability and prevents strip-out.
Any large change in the cable tension should be done by
reanchoring the brake cable, not by backing out the barrel adjuster.
(c) Copyright 2006 Community Exchange Bike School.
All Rights Reserved. ExchangeCycleTours.org
Last Updated: 9:45pm, 11/08/2006.
Fig. 32 The brakes should engage when the lever has travelled about 1/3 of the way to the handlebar.
(c) Copyright 2006 Community Exchange Bike School.
All Rights Reserved. ExchangeCycleTours.org
8. Final check. Last Updated: 9:45pm, 11/08/2006.
Squeeze the levers a few times, make sure they feel good and that both levers engage similarly. Spin the wheel
and look and listen for any rubbing. Take the bike for a ride to test the brakes. They should stop quietly, smoothly,
and effectively.
If your brakes squeal, most likely the pads are not toed in correctly. Check for equal and sufficient toe-in.
If they do have a good amount of toe-in, check that the retaining and mounting nuts are tight.

On certain low-end generic brake pad/rim combinations, it may be impossible to eliminate all brake squeal.