CS Nocaster neck adjustment, help needed !

How should that neck be set up to get the lowest action possible.

Flatten out the neck by adjusting the truss rod so there's no relief. Then, adjust the bridge to the height you want.

But first....why? Guitars really do need some relief to play properly. I'd say experiment. Mark the position that the truss rod is set to so you know how to get back. Then play around with different string heights.

FYI - my best playing and sounding teles have never had low actions.

Also, when tightening the trussrod, bend the neck back by hand and then tighten it. Don't make the trussrod do all of the work. Many people get away with it but it's a bad habit to get in to. Could cause problems, too.