I just did mine the other day. If it is too big, the tailstock is too far back (away from the cutter).
If it is too small on the end, it is too far forward.
Before you get too much into it, put a dead center in headstock and tailstock and bring them tip to tip and see where you end up. Also check with the quill both retracted and extended.
To adjust, there is a set screw on the outboard end of the tailstock and a socket head screw on the bottom. The general idea is you take the set screw mostly out, loosen the cap screw on the bottom a little and gently move the tailstock until it aligns with the spindle. (I used a small brass hammer with light taps) Match up the points and tighten the set screw to hold it until you can snug up the cap screw below. I got lucky and set it close enough for me just aligning the centers. To get it perfect (as much as possible) you turn on both ends of the bed and keep moving and testing a little at a time until it is as close as you can measure or have the patience for.