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To be a little more clear on my procedure:
1. Loosen the cable at the hand lever so there's plenty of slack.
2. With the hand lever fully released tighten the star wheel shoe adjusters until the shoes just start to drag as the tire is rotated.
3. Pull the hand lever on fully and release to center the shoes.
4. Repeat step 2.
5. Repeat step 3.
6. Back off the star wheels just until no drag is felt.
7. Tighten the hand lever cable until tire drag is felt within 2-3 clicks.

So my and the OP's only contention is that step 6 would take 10 clicks of the star wheel.

Actually since backing off the star wheels is usually a pain I often do the adjustment/recenter carefully enough to leave just the slightest drag figuring the shoes will wear to no drag quickly and no backing off of the star wheels is needed.
I have been doing some thinking about this. I agree with Dr. Dyno's procedure except step 6. I like that he starts with lots of slack in the cable, so that he can adjust the star wheels correctly (without an improperly adjusted cable factoring in).

I began to think that backing off the star wheels 10 clicks in step 6, and then adjusting the cable length to hold the car within 3-6 clicks of the lever, may be a good idea.

In order for that to work would probably require that when the lever was released, that some tension in the cable was already pulling the shoes partway towards the drum to overcome the larger gap (10 clicks vs 2).

By doing this, the constant tension in the cable, caused by the brake springs pulling back, would help to ensure that the brakes release fully and overcome any stickiness in the cable as it ages and begins to suffer from inevitable corrosion.

I think every other procedure in this thread just adjusts the star wheels regardless of how tight the cable already is.

In cases where the cable was adjusted too short, the star wheel adjuster length will need to be shortened to keep the shoes from dragging ( and there will be tension in the cable when the lever is released ). In cases where the cable was too long the star wheel adjuster may need to be adjusted close to its maximum length in order for the shoes to reach the drum, and there will be no tension in the cable when the lever is released.
 
I think every other procedure in this thread just adjusts the star wheels regardless of how tight the cable already is.
In post #2 of this thread I quoted step 11 of 17 in the Reassembly section of the parking brake chapter. The initial question was how many clicks. I suggest you download the 2006 Service Manual, and look at chapter PB "PARKING BRAKE – PARKING BRAKE SYSTEM" for more processes and steps. It is clear to me that there should not be any tightening tension on the brake cable during the star wheel adjustment.

Also, as I read it, that step 11 said to tighten the star to lock the rotor, and then loosen until the until the brake disk can rotate smoothly. And that would typically be 8 clicks. It does not just say to loosen 8 clicks.

That Reassembly section ends with this:
15. DRIVE VEHICLE
(a) Pull the parking brake lever with a force of 147 N (15 kgf, 33 lbf).
(b) Drive the vehicle at approximately 50 km/h (31 mph) for approximately 400 m (0.25 miles).
NOTICE:
Drive the vehicle on a safe, level and dry road.
(c) Repeat the above steps 2 or 3 times.
16. CHECK PARKING BRAKE LEVER TRAVEL (See page PB-1)
17. ADJUST PARKING BRAKE LEVER TRAVEL (See page PB-2)
 
I suggest you download the 2006 Service Manual, and look at chapter PB "PARKING BRAKE – PARKING BRAKE SYSTEM" for more processes and steps. It is clear to me that there should not be any tightening tension on the brake cable during the star wheel adjustment.

Also, as I read it, that step 11 said to tighten the star to lock the rotor, and then loosen until the until the brake disk can rotate smoothly. And that would typically be 8 clicks. It does not just say to loosen 8 clicks.

That Reassembly section ends with this:
I think I agree with what your saying.

In the service manual, the first section is about adjusting the lever travel.
Step #1 says to loosen (slacken) the cable with the adjusting nut under the center console.
Step #2 says to adjust the brake shoe clearance with star wheel adjuster. (8 clicks back from a locked disc)
Step #3 says to adjust the nut under the center console so that the lever can be pulled 7-9 clicks without rear brakes dragging.

Step #3 seems unusual because most posts have said that the parking brake should be holding the car with 7 clicks. I think Toyota wants a few clicks of slack, so that the warning light will be illuminated well before the brakes ever begin to drag.

What I was suggesting in my previous post, is that if the shoe gap is adjusted a few clicks beyond the "just dragging" point, you would need to adjust the cable length so that some movement of the shoes is already being applied "close the gap" when the lever is released. This steady spring pressure would help to overcome drag in the cable to fully release the brakes.

Anyone who has experience a parking brake that doesn't release because of cable corrosion, will know what I am talking about.

Once again, the most important thing is to not adjust the shoe clearance until all tension is removed from the cable. It doesn't necessarily say that there wont be tension in the cable after adjusting the lever movement.
 
I just received my rear brake pads and will be adjusting the parking brake while I do the job. Having a disk/drum set up on most of my vehicles, I am familiar with the process. I am not replacing my rotors as they have minimal wear and no warpage (excessive material build up), but I typically remove them and clean them up which also allows me to inspect the ebrake components.

I have noticed that the lever comes up higher than it use to. This is the first time that I have adjusted the e-brake on this car. Typically on the first adjustment, one would also adjust the cable tension adjustment at the hand lever. As this is an auto the parking brake is rarely used (and primally drive by my wife who never uses the e-brake) I assume that the change in lever position is primarily a result of cable stretch. I do use the e-brake when I drive the car when setting up a drift; ha ha just kidding. I do use the e-brake when parking on a hill so that I do not put as much pressure on the parking gear. Does anyone have input on cable tension adjustment. I assume I need to pop up some interior panels. Crawl under the car to see if I can find the ebrake cable and check for slack. Then turn an adjustment nut till all the slack is removed from the system.
 
Here's how I adjusted my cables w/o taking lots of stuff apart. Posts 71-73.
 
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