OK hozhead and ahowsare, check this out and see if it makes sense.....hopefully it will help in your adjustments.
The primary job of a motorcycle's suspension is to separate the chassis from the effects of bumps and other surface irregularities while simultaneously keeping the tires in contact with the road. Suspension systems have two theoretical components, springing and damping.
The spring controls how much force is required to compress the suspension and the damping controls how quickly the compression and subsequent decompression occurs. The Preload adjustment determines the spring force. More preload, more required force to compress the spring. Less preload, less required force to compress the spring.
Compression damping controls the speed at which the spring is allowed to compress for a given force applied. More compression damping, the slower the spring can compress. Less compression damping, the faster it can respond.
Rebound damping controls the speed at which the spring can rebound following compression. Again, more rebound damping means a slower spring decompression, less rebound damping means faster decompression.
Determining the optimum suspension settings for your bike is as much art as science and has to do with your physical characteristics and riding style as well as the physics of the motorcycle's design.