See
How to find the grinder true zero point for discussion. The exchange excerpted below from another thread elaborates on this point:
HunkaBurninLove and HB wrote:Q. I was trying to find the "zero point" but wasn't sure if I really found it. Turned on the empty grinder and slowly adjusted the collar until I heard what appears to be the burrs touching. The sound reminds me when you get a key made, so I assume this is it? I didn't want to go any farther for fear of damaging the burrs.
A. Yes, the sound you describe is very apt. You can also clear the grinds from the chamber, turn the grinder OFF, and then turn the dial hard counter-clockwise to find the zero point. However, the factory setting is an accurate "start here for espresso" setting. I don't think that I've drifted more than 1/2" away from it in either direction (though to be honest I removed it long ago).
However, judging from your description, I'm wondering if either (a) the coffee beans are stale, or (b) you're turning the grind adjustment the wrong way - remember, counter-clockwise = finer.
My first recommendation is to start with a known reliable coffee that is marked with the roast date. Ideally pick one you know well (e.g., from a good nearby cafe). If that's not an option, there's lots of online coffee roasters. Of the HB sponsors, Intelligentsia Black Cat, Counter Culture Coffee Toscano or Caffe Fresco Ambrosia are frequently mentioned as forgiving blends to learn on. The Coffees forum has a number of threads offering other recommendations. My second recommendation is to assure your grinder's setting is in the ballpark by reading the tips in
Fine tuning grinder setting with minimum waste, specifically
this post.