adjusting S-A three speed

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I just want to know if Im doing this correctly as this is the first 3 speed hub I have used. I have a Sturmey Archer 3 speed and I am using a stick shifter with it and I am attempting to get the tension set on the shifter cable/chain indicator. I have set the tension where the cable is at its longest, if that makes any sense, and when the shifter is moved it pulls on the chain indicator. The bike is a fresh build and I havent rode it that far because of other issues but, when I did I am fairly certain it was not changing gears. Also, the hub has been rebuilt so there should be no issues there. Do I have the tension set correctly or am I going about this in the wrong way?
 
Flip the bike over, or put it on a stand so you can turn the crank by hand. Put the shifter in third (high) gear, and tighten the cable at the barrel adjuster until there is almost no slack in the cable. You don't want the cable too tight. Crank by hand, and try your gears. That should do it. If it's an older Sturmey, you may find a 'false neutral' where second ought to be if the cable is too loose.

JWM
 
When the cable is at maximum length, the hub should be in 3rd (high). Pulling the cable (shortening) should shift to 2nd and eventually 1st. Try adjusting the cable length a couple turns at a time until you get it into another gear and then fine tune from there. You do have the stop on the outer casing?
 

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