DV Info Net - Not sure how to dial-in my head

Hey guys, as a long time photographer, I am not so new to tripods, but as a newcomer to videography, I am pretty much entirely new to tripod heads, especially the fluid-type.

I have a Canon XH A1 and a Bogen/Manfrotto Tripod with the Bogen 503 head. It feels great, but for slow panning and tilting, I am bit unsure how I should go about getting it dialed in for the most smooth and shake-free movement.

It seems that there is a benefit as far as hand shakiness, to adding a lot of friction to the head, but for small movements, that friction is far less superior to a more fluid/softer friction that can allow me to make very tiny adjustments.

I am looking for some guidance on what a general rule of thumb is for how much friction to apply to the head in normal shooting conditions. I have no clue as to how much friction is too much or too little. Any help on this matter would be greatly appreciated. Thanks.