If you set your pump by the cable gap it should be on the long side of the spec for reduced consumption.
If you have a 500 then there is a notch on the oil pump and the oil pump lever, hold the throttle wide open and align the notches. On my wifes 500 I aligned them just SLIGHTLY on the lean side.
The throttle cable free play is measured at the throttle lever. Just move the thumb lever until the slack is removed from the cable. The gap is measured between the lever and where it rests when fully released. It will have a picture of this in your owners manual.
Are you referring to the TORS switch in the lever pivot? Just hold the pivot point stationary at either position, the free play should remain the same at either position of the pivot. It just makes it easier to measure if it's stationary.
Make sure you set your idle before you set the free play. When you change your idle speed it changes the free play. Turn the idle speed up, less free play, turn it down more free play. The free play is just a small amount of slack in the throttle cable.