Doing more reading it says there is plenty of overlap between the positions, so i'm assuming its fine to just raise the polar axis to my 45° latitude while the altitude adjusting bar is in the third position is 30-48°.     Just seems like its at the top of its range.

The origional owner of my AP1200 was about 2 degrees south of me. Im at 45 degrees.   Do I have to move it to 3rd position to the 2nd position or just raise the polar axis with it in its current state.   Is there an optimum thing to do?  Overthinking?

From the manual:

The four positions for the altitude adjustments have the following approximate ranges: 57.5° to 69° latitude - top position (1) 41° to 63° latitude - second position (2) 30° to 48.5° latitude - third position (3) 22° to 38° latitude - bottom position (4)