Brake pedal adjustment

[ncff07]

Need some imput on adjusting the brake pedal, first off I HAVE used the search feature here over the past couple days and found many and read all those relating to adjusting the rear brake pedal but nothing about what i ran into doing it. I'll post the link below to what i used. The rod with the adjusting nut connected to the hub only had about an inch that i could turn it back before it hit the cotter pin. I loosened that as far as i could hoping it would be enough and when i lowered the pedal it seemed to get tight too quick when the pedal was just above the peg and didnt have any play at all and i didnt go down any further with it and set it back up to where it was for now and tightened it down and checked the brake switch to make sure it was still ok too until i get it figured out. I do work on my own vehicles and can do what i need to do to them but have never owned a bike so i know enough to know when to stop. So am I correct in thinking the rear brake is worn out and has been adjusted before and doesnt have much further to go before it needs to be replaced? Which leads me to another question that I couldnt find the answer too, the rear brake wear indicator markings on the hub, when the rear brake is fully applied its ok as long as the "pointer" is between those 2 marks but which of those 2 wear indicator marks is good and which is worn? Its showing its still good but its just inside the front mark. Below is the link to the page where i found what i needed to know about actually adjusting it.
http://www.gz250bike.com/forum/viewt...ake+adjustment