I keep mine floating about 1/16-1/8" on all my strats, depending on the string gauge I'm using. I prefer the sound from the floating trem and never really noticed a big difference when it was flush. I've never had tuning problems with a Fender and floating trem. I lubricate the nut with graphite, set it up to Fender specs, and stretch the strings real good when I change them. It seems to work.