Assuming you have created a CD with a 1 kHz tone and popped it into your CD player, we are gonna record the tone (on the reel-to-reel) and feed the played signal (via the headphone jack) to our favorite audio editing software (cool edit pro, to cite one). It's relatively easy to adjust for height since you want to get the loudest possible recording (as you see it played in the audio editing software). You just have to keep an eye on the dB levels and adjust the two screws for maximum levels.
Now, what we are really interested in is the azimuth alignment. For that, you have to look at the phase analysis after you are done with a recording (say, 10 seconds) and adjust the side screw until you get a recording for which the Lissajous curve is close to a diagonal.
The video just shows azimuth alignment and how the Lissajous curve should look like for a 1 kHz tone. You are supposed to rinse and repeat for the 10 kHz tone but it's a little bit harder to do.
