West Coast - You said you "backed it all the way out". How did you know when it was "backed all the way out"? Which direction did you turn it? Like I said the manual says not to turn it past the upper or lower limits but how do you know when you are there?
I may just leave it alone...the bike handles fine as it is.
On the rear adjustments I just backed the preload knob out all the way until it stopped (counter-clockwise). Didn't force anything, just did it gently. You can tell when it stops. Nothing damaged. Same with the rebound. Just gently turn the adjusting screw counter-clockwise until it stops. Once both are "zero'd" make your adjustments from there.
Same with the front. Using a flat blade screwdriver, turn the rebound counter-clockwise until it stops. Again, it just stops. No damage unless you force it. Then using a 19mm socket, turn the preload all the way out. Just go slow. (Count your turns, that way if you don't like the way all your adjustments turn out, you can always return it the way it was.) Once zero'd, make your adjustments from there.
There are several threads on here about suspension adjustments. I just followed what others had posted and adjusted mine to suit my riding style and body weight.
I was also going to leave mine "stock" because I felt that the bike handled fine but once I adjusted everything, I could tell a difference. Like I said in my previous post, I don't think my dealer did jack with my bike other than to take it out of the crate. My suspension adjustments were all over the map.
Don't worry, I was afraid to touch my bike too, but once I figured out what was going on with the adjustments, it really was simple. Just don't turn anything past the point where it stops on its own and you'll be fine.
Hope that helps.