Actually that is the problem Madkaw, it is altering the travel. Travel goes from 138 mm with 7.5 rings showing to 149mm with 1.5 ings showing. Now I didn't actually try to compress the springs all the way down to see where they stopped (as in if they stopped before the top of the stantion hit the dust cover) but either way it isn't going to make a difference. Because I get the same difference in loaded and unloaded measurements no matter what the setting, it just alters how far up the fork leg these respective measurements are taken. I did the stiction negating method outlined
Here too, so that has nothing to do with it.
I think these front ends may fool some people because the scenario goes something like this:
1. Lift up front of bike and measure distance from dust cap to top of stantion = 138mm
2. Jump on bike (after putting front of bike down again

). Have assistant (read: missus) push down on bars and let up slowly. Take measurement = 93mm.
3. Now get said assistant to lift bars up and let down slowly. Take measurement = 103.
4. Now average the 2 measurements to remove stiction from the equation and get 98mm. Therefore sag at this point is 40mm.
5. Wind in preload adjusters from 7.5 rings to 1.5 rings (I actually did it with more and smaller increments than this but to save space here...) and do the 2 measurements again to get an average measurement = 109mm
Now at this point most people would say "Yep, that's it, 138mm - 109mm = 29mm, my preload / sag is better". BUT, the next step kills that theory:
6. Lift up front of bike again and measurement = 149mm !!!!
So if you do not measure the unloaded sag AFTER moving the preload adjuster you would think you have fixed the problem but alas this is not the case.
Now the 10mm of stiction (the difference between the 'push-down' and 'pull-up' measurements) is consistent all the way through the suspension stroke, and is typical for these forks. Either way it has no bearing on my results.
Sorry for the long post, I just want to get to the bottom of this. I am not trying to prove anyone wrong or win an argument or anything, I just think that maybe these forks really do not have preload adjustment. When I read the article about this at the site linked in my first post, I didn't believe it. Unfortunately it is becoming more and more believable.....
Thanks for your help and input everyone, I hope we can discover what is really going on here. One thing I keep thinking is maybe they made them like this to enable quick ride height adjustments at the track, as preload must be manually pre-set with shims etc.
Whaddya reckon?
EDIT: Fixed some grammatical and BBCode errors.