Not exactly. Slack may cause the lever to rattle. The gap I referring to is the gap between the diaphragm and the lever. It sounds to me you are getting close, you just need to continue with the adjustment. Next step is to bring the lever back up to full height, then adjust the orifice to mate with the seat. If you lose lever height, bring it back up-continue this process until everything is in place.Slack in the lever equals a gap correct?
I cannot explain this procedure better than Pete Wolfinger. See Reg Savvy Chapter 15 starting on page 144.