I'm probably as much a novice at these settings as you are, but here is what I've found out through "a whole bunch" of experimenting and sewing of scrap leather.
Tippmann (Customer Support) told me the bobbin tension should be right at about half of what the needle thread tension is. However, if you start by setting the bobbin tension at the recommended 1 pound, than that means the tension from the needle thread should be 2 pounds. I tried to use those settings but found out the machine was making my stitches WAY TOO tight. So, I backed off the bobbin tension, and of course the thread tension as well. Currently, I have the bobbin tension set at 1/2 pound (8 oz), and the needle thread tension at 1 pound. The machine sounds better, the hand crank effort isn't as strenuous and my stitches look perfect, with the lock stitch buried in the middle of my material.
However, there is a possible Gottcha.... when using only an 8 oz. bobbin tension. That is, the machine is a lot more susceptible to small bobbin tension changes caused by an unevenly wound bobbin. So, if your bobbin is not near "perfectly" wound, in nice flat layers, you can end up with occasional stitches where the lock stitch (knot) will sit on the bottom of the material, or occasionally on the top, instead of being where it should be; in the middle of the material thickness.
I'm still experimenting and testing, but that is what I've found out so far. Maybe I'm approaching this all wrong, then I hope others with more experience will jump in here and help both of us.