Whats the best way to set up my bike?

like seat height, handlebar height etc

Answers:
Measure twice build once
handle bar and seat should be level or seat slitely lower(nt much)
Your legs should be just bent when the pedal is at it's lowest point and you are sitting properly on the saddle. You don't want your legs to lock-out when pedalling but you also don't want your knees coming up to your chin either as this makes pedalling very difficult and will make your legs ache. Handlebars are a personal thing some like em high others like em low. On a 'Miss Marple' bike you would have them high and on a mountain bike they would be relatively low for good control. As long as you are comfortable and have full control of brakes, steering etc you should be OK.
your bike probably has a group on Yahoo Groups, mine usually do. They know a lot about your particular make, model, etc., as well as the suppliers of quality gear.

Your feet should reach the ground flat, not just on your toes.you'll need it, so you have to sit on your seat and check that out.

Your seat should be as comfortable as possible, you don't want cramps, legs going to sleep, etc. the comfortable position should dictate where you want bars, mirrors, etc. Once you settle where you're gonna sit, then setting up the most comfortable and safe way for you to 'handle' is arms almost straight, a little lower than the shoulder if you have no shoulder or back problems.

I would talk to an expert. the guys who work the motorcycle safety courses in your area love biking and have been around a long time, they have a wealth of experience to share.
I WOULDN'T BOTHER WITH THE SEAT!
Your seat height should be at a level which means you have to tip-toe on the ground, however you can make it slightly lower if you prefer.

Even though I do know this I don't actually have it at that correct height myself.

The handlebar height should be at a level you are comfortable with as in not to high but not too low.

You should make sure it is easy for you to reach too.

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