It looks like the #1's adjustment is by a screw setting on the case.

oneatatime. There is no adjustment in the No1 tool per say. There is a slot cut in the case to allow fore and aft movement of the case to hold the bullet prior to seating. It always made me a little nervous sliding a case in a chamber, with a steel screw flush(hopefully)with or below the case surface, so replace with a brass set screw. It is fairly simple to make it adjustable by fitting a brass set screw in the case mouth and mounting with a screw threaded into the end of the tool after shortening the rod the required amount, Then after seating depth is determined, holding it in place with loc-tite on the screw. Or, simply buy a leverage tool to simplify the procedure. Sometimes more enjoyable to make something work better or building one yourself!!

CPA sells a nice palm rest for a reasonable price, and a want ad here might pay off. You have a very nice rifle to work with. Keep us apprised of your progress.   Krag

Since your rifle has a later rail added, it appears that someone set it up for the European rail type palm rest. You might look at various sellers of modern rail type palm rests that will slide right on yours and work.
Champions Choice or Freeland both sell those for modern rifles. They use blocky wood now, so you might just remove the wood and build your own ball or shaped wood.

I have a lot of blowback on these cases. I know I have to play with some loads but I had a few loaded with 12grs 4759 and a cork wad and used the 319289 bullet, of unknown alloy,  breach seated. 
Where should I go from here? 
Thank you
John

Smoked necks like that can usually be prevented by sizing the brass so the neck is a snug fit on the chamber.  Flaring the case mouth a bit can help.  Annealing the case necks is another helpful step.  I'd say a faster powder might help, but you're using 4759, which is about as ideal a powder choice as has ever existed.

I'd either switch to a faster powder, or up the charge so it seals the case better. Remember when you breech seat you've basically changed the case to become a much larger volume case, so typical load data will be too light with the extra capacity. 
If you have a chronograph you could see that the velocities are likely much lower than published data for fixed bullets. 
Another good powder for me is 2400, which I use a lot of for breech seated loads. 4759 is a good powder, but once your supply is gone you'll be looking for something else anyway. Might as well work up loads with something common.

I was using an abundance of caution with my load of 12grs of 4759. In Wrights Shuetzen book for beginners he suggests a starting load of 14grs of  IMR4759 with a max of 15.5. For IMR4227 he suggests starting at 12.5 grs with max of 14.5grs.  
Now that we have determined that I have a forged frame I am more confident the gun won't have a problem if I stay within these parameters. 
I only have enough 4227 to try a few rounds and doubt I can find any more for awhile but will give it a shot.