I don't know how to tell what it's set to or what it theoretically should be set to, but I found a good setting just by sheer trial and error. It ended up being about a 90-degree counter-clockwise turn from the position it came in. (I bought it off of electronix.com.) All in all, I think it's a little more than 180-degrees from the furthest clockwise position possible. Sorry I don't have a better way to describe this.
It took a few nudges to get it just right, but that was just to get one particularly finnicky game working consistently (import version of Golden Axe). Lords of Thunder was pretty finnicky, too, but that started working a little sooner than Golden Axe.
It might also be worth mentioning that when I first put the new laser in, everything worked perfectly right off the bat. Then a couple weeks later, it would barely read anything, let alone CD audio. That's when I started messing with the potentiometer. So I wonder if it takes some time to "break in"?