I have adjusted it until the bubbles are at the point where the collection cup joins the body and the air a valve screw is open. The micro bubbles have gone now.
There isn't many bubbles in the collection cup tube and I assume this is because there isn't anything in the water for it to pull out but looks a lot better.
There is nothing wrong with the bubble level there, but it’s still a bit high unless your very wet skimming, it’s personal choice, but ideally it wants to be lower to were your drain tube is wrapped around in the picture. But it’s your skimmer so you set it how you like it and just have a play around until you get the results you want.
Just remember if there is nothing in the water it won’t pull anything out and the best time to set the level is around 2 hours after feeding. You will get the feel for it after a few weeks, but just make minor settings adjustments and then leave it. And be prepared for it to ‘freak out’ overskimming in the first few weeks for no apparent reason!
You can get the food grade silicone grease of eBay, just search and there is loads.
On your lights if you don’t want to use screws, try heavy duty Velcro. I discovered the joys of this a month or so ago with my LED strip sump lights. Marvellous stuff!