The "lateral adjustment" is done "by lining up the jockey sprocket with the low-gear cog by means of the knurled head of the adjusting sleeve and locknut."
Then, as noted in my earlier reply, the distance the derailleur will traverse towards the high-gear cog is limited by an internal 'collar' - more restrictive on the 2-speed & 3-speed conversions than a 4/5-speed unit.
Alan Lloyd Schaumburg, Illinois, U.S.A.
From: Hilary Stone <hilary.stone@blueyonder.co.uk> Subject: Re: [CR] Cyclo Benelux two speed conversion kit question
The arm is not designed to be bendable. The throw on the sliding piston is different for the 2-speed from the standard 3-speed.