Loosen the caliper bolts. Wind the inner pad in a few turns so it keeps the rotor in the centre of the caliper. Pull the brake, so the rotor gets pressed against the inner pad. With the brake on, do up the caliper bolts evenly. Give it a spin, it should rub on the inner pad. Undo it a few 'clicks' so it doesn't rub, but is as close as possible to the inner pad. Now do up the outer pad. I've found that winding the barrell adjuster in the lever quite a lot makes the brake feel awesome. No idea how, just does?