Sometimes I hear a rotational related noise coming from drivers right rear only in the mornings when car is cold and I apply brakes to stop. It sporadically happens, sometimes goes away for weeks. When it does happen it will go away for the rest of the day. (Originally I associated this noise with a previous front wheel bearing issue that was repaired and only when the noise came back, after that thorough repair, did I realized it was coming from the back of the vehicle).

Pulled the drum off the back wheel today (parking brake released) (jack on side of vehicle, only one tire in air) and the drum easily pulled right off without having to looses star wheel. Everything looked pretty good to me (?).
https://imgur.com/a/JBv7csb

So I wondered if the noise is because the shoes just needed adjustment. Knowing nothing, as usual, I drove a series of reverse back ups thinking that this was how drum brakes ‘self adjusted’. Later I read the FSM BR manual and it said:

1. Adjust clearance between shoe and drum as follows:
a. Release parking brake lever and loosen adjusting nut. 

b. Depress brake pedal fully at least 10 times with engine run- 

2. Pull control lever 4 - 5 notches. Then adjust control lever by EM 

3. Pull control lever with specified amount of force. Check lever stroke and ensure smooth operation.

Is this really how you adjust the shoe to the drum ??

I thought that gross adjustment was done with that little star wheel though the back slot. If it is done through with the star wheel where are the instructions on which way (clockwise / counter - up/down) you should be rotating it to get it to expand pads ?

The adjustment mechanism in the drum adjusts those star wheels automatically. Pumping the brakes 10 times makes that adjustment. Having the parking brake adjustment nut loose assures the parking brake cable does not hinder the full movement of the shoes while they are being adjusted. With the parking brake cable loose and then the lever pulled up 4 to 5 notches before tightening the adjustment nut to take the slack out of the cable and draw the shoes into contact with the drum, you will then have the parking brake adjusted as well. A normal pull force on the parking brake lever will then be 6 to 8 notches up. If it's more than that, tighten the parking brake adjustment nut a little bit more until it's right. The only time manual adjustment of those star wheels is necessary is when new shoes are installed so you can get the drum put back on. As long as the new shoes are not touching the drum when it is installed, the adjustment procedure will make the final adjustment corrections. Unlike my old '91 Pathfinder, I don't think my '02 even has those typical rubber plugs that are removed for adjusting the brakes from the back side while everything is assembled. Could be wrong but I know I never had to make the adjustment through those plugged holes like I did on my old '91.

Yep, worked great. Found a few ball point pens, gum wrappers, pocket change etc, in there too.

I can feel a more 'weighted' braking now with the rear drums giving assist. The thing is though that tightening that 10mm nut on the long bolt under the handle took about 30 turns of the ratchet to get snug-tight. (only a few turns to loosen just using my hand on the extension without ratchet). I really started to wonder what was going on.

The part where FSM tells you to then lift the handle 4~5 clicks after pumping (I did 4 clicks) before tightening nut is fine and all but when you go to lift the handle higher (5~6 clicks), after snugging nut, you struggle to even get 5 clicks (?).

Jacked up differential to test for free turning and also how well handbrake held wheels from turning and all good.