No worries, this is a good section for this kind of thing.
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The B-Series leader comes 7" long (finished/tied length), most fliers who have had a chance to properly understand it are using 8"-9" leaders.
Knots are every 1/2" or so, probably 8 or so of them starting from the end.
Bottom attachments are short, maybe 2"-3" long, just enough to attach really.
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Settings... Best way I think, is to let the top adjustments all the way out until you can't launch...
Once there, pull it in one knot at a time until you can launch... That'd be about right.
As you become more skilled, you'll find that launch knot will start to be further out, as you deepen your understanding of the kite.
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Extended handles make your inputs stronger on the kite... Some folks do like them, but I find that I simply don't need that much torque on the kite.
On the whole, having the right settings and practicing the essential techniques will take care of pretty much everything, imho.
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Lots of good info here too...
http://www.learnkites.com
Some of the tutorials are available only to Kitelife subscribers, but you'll find the price is VERY reasonable compared to the material that is available (HD or iPod/iPhone formats).
Sail Loading, Light Wind Flying and Tuning Theory I are all included in that batch of tutorials, many are picture-in-picture (kite/pilot), and each one is highly relevant to the questions you're asking.
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Last but certainly not least, I think you'll be surprised at the amount of info available here...
http://www.revkites.com/forum
Cheers, glad to have you here.