Hi Alex. The saddle is the bit that the string passes through and over as it heads out of the bridge towards the neck.
on the floyd trems you adjust its position forward or backwards by loosening that allen head screw on the baseplate and shifting the entire assembly in the required direction, then locking the screw back down.

All the manual is saying is that the sadddles should be moved somewhere near the middle of the available adjustment you have on those allen screws. Your bridge shows there is a fair staggering of the saddles, you want to move them into a line, more or less across the middle of the adjustment range.

Make sense? or have I just confused the issue?

EDIT: Beaten to the punch by a very succinct Wokka!