I think you have done it correctly, the proof is in whether the pedal is hard and whether the pads both move in and out about the same time.
Also look at the linkage at the back of the master cylinders, the link between the two imput levers should be at right angles to both of them.
Not sure which part you mean on the reservoirs, the fluid level should be about 1/3 to 1/2 full. Any more and you may have problems as the fluid gets hot.
I think the rubber seals help to provide back pressure to stop air being introduced into the system.
Depending on where you want your pedal position will dictate how far the bolt protrudes. Just make sure that if you do move it that the imput rods into the master cylinders stay located inside the cylinders and are not applying pressure to the brakes.
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