Try setting up your machine with the 4 different thread colors as the guide--use yellow thread in the yellow guide, blue in the blue, etc. This is a good way to figure out what is not working with your tension dials. To start out with a 4-thread stitch, set the tension dials at the midway point on each and then test your stitch. You should be able to see which thread colors are off. If one color is wrapping over the edge of the fabric, then that tension is too loose and the opposite thread may be too tight. The tensions are correct when the threads meet in the middle of the fabric. It's a matter of sitting down and playing with it to see what happens when you make changes to the settings. Also, one particular setting that works on a particular fabric may not work on another, so learning how to test and adjust is a big part of using a serger.
As for stitch length, that is mostly a personal decision. The shorter the stitch length, the closer the stitches will be.
The anatomy of perfect serger tension Sew McCool
Serger Tension Made Easy Do It Better Yourself Club
There are many web sites and videos that could be helpful.
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