I know it is set at 3.
 
I weigh 123-125lbs with gear on, should I crank it to 9?  And I see on my manual page 4-19 what I need to do, is it that simple?  Anything else I need to know?
 

I'd like to know the 'experts' answer to this as well as I am 5'8 and 130 soaking wet plus gear so I am curious if I should change my settings for the rear as well. I know this stock rear isn't the greatest available but if I can 'fine tune' a bit for better results I am up for it!

7 is about right for me at 200lb + gear you will find after a few hundred miles
the suspension like the engine will free up and work better if you feel the rear
is softer than the front turn it up a notch at a time till it feel balanced,
you are supposed to set the sag, lots of info online but we can't adjust the 07's front
so set the rear so the bike feels like it reacts the same front and rear is about the best you
can do without changing parts, the rear shock is very underdamped and should likely be top of your
list to upgrade if you want to go faster.

I've been wondering this as well. I'll be about 270lbs with gear.