the gibs are there to compensate for wear.
to adjust, simply back off the nuts on the side of the compound rest and engage the setscrews with a screwdriver.
turn the screw clockwise to tighten the gib, counter clockwise to loosen the gib.
there should be 3 or 4 setscrews, dependent on the model of the lathe
regardless you'll loosen all the gib nuts up, and start from the center out adjusting the gib screws.
i give a turn until i feel contact and back off a touch. then while still holding the setscrew i'll adjust the lock nut until it locks.
i'll give a motion check with the handcrank and readjust the last gib i touched if anything feels irregular
repeat until all gib screws have been adjusted and the compound rest has a snug or very slight drag under well oiled conditions
i hope the explanation was satisfactory, if you have other questions about the process feel free to ask