If you have a headstock stand I think it's easier and quicker to take each fork leg out and get it done right.

Don't forget that you'll need to remove all oil from the springs and spacers otherwise it can considerably add to the oil amount when you put them back in.

Never had any problem reassembling fork caps no matter how many parts were disassembled. However, your comment Neo did blow the cobwebs away and thus I amend my procedure to delete steps 5 & 6 and substitute:

5. simply wind the preload adjuster into the fork cap until it drops out the bottom.
6. remove the washers, spacer and spring over the top of the rebound adjuster.

OEM oil heights are always measured with forks fully compressed. However, having set the initial height fully compressed you can use any amount of fork compression thereafter provided you record the amount of compress at the time you made the measurement.

how did you go with this?

reason im asked is that im a little confused. the haynes says to back off the bolt holding in the compression rod and then remove the spring. so....am i meant to leave the compression rod bolted in and remove everything off it including the spring? or remove the compression rod? cos removing the compression rod makes all the oil fall out the bottom through the bolt hole...

If checking/adjusting the oil level, you need to remove the preload adjuster and then the spring. As you say "back off the bolt holding in the compression rod and then remove the spring" will remove the cartridge and allow the oil to run out. These Hayne's words I think you will find refer to the complete disassembly of the fork leg, not an oil level check.

wow...i really did not write that well.

thanks for the info.