Front Wheel Bearings:, How tight is too tight? Options

[SirAndy]

My frontend has felt a bit shaky lately so i decided to check on the wheel bearings.
The drivers side felt tight but the passenger side had a bit of play and "The Clunk™" when i wiggled the wheel with my hands.

After removing the wheel and the dust cap, i first checked if i could rotate the clamp with a large flat screwdriver. Nope, good.
Then i went to check the washer behind the clamp as you're supposed to just barely move it with a screwdriver. Nope, rock solid. Hmmmm.

So i loosen the clamp nut and sure enough, i can move the clamp a good 1/3 rotation tighter with my screwdriver. I check the washer again, rock solid. Hmmmm.

I tighten it all up, put the wheel back on and no more clunk or play. The wheel still rotates freely.

Yet, i was under the impression that you should always be able to move that washer behind the clamp. But if i loosen the clamp enough to just barely be able to move the washer, my wheel feels lose and wiggles and clunks.

So how tight is too tight for those bearings?
(IMG:style_emoticons/default/idea.gif) Andy