This is from the FAQ from the old web site
Is there any way to adjust the handlebars on the LT?
Yes and thanks to Vic Agresti for the following procedure: These are written for someone that has not previously worked on the bike. For others, some the early steps will be obvious.
If practical, combine this work with another project to save your labor. Donít force anything. If a piece wonít come off with a gentle tug, you probably missed a screw, or something similar. Have a feeler gage available that allows multiple thicknesses to be combined. Keep track of the screws used for each piece.
1. Set bike on center stand, point the front wheel straight ahead, and measure the distance from the floor to the top of each handle bar end. Repeat until both measurements are the same. Youíll want this later for comparison, to see how much you have raised the bars.
2. Remove front turn-signal housings.
3. Remove adjustable (swivel) ďwingletsĒ (held on via 3 screws). This will simplify fairing removal and reinstall.
4. Remove the two screws from the 4" x 6" colored plastic trim between the seat and oddments box. Slide out and remove.
5. Remove bumper guard assemblies.
6. Remove upper fairings. The middle top of each fairing has a tab (at oddments box location) that inserts straight-down into a slot along the top ridge. Lift it straight up. (On re-install, make sure this tab is properly inserted into that slot.) Also, each side has a push-fit pin into a rubber grommet where your knees go. Pull the fairing straight out to disengage pin. (To re-install, apply a small amount of grease or Vaseline on the pin, align the pin with the hole, and push it in. It wonít seat all the way in -- thatís OK.)
7. Remove screws from around the radio/CD/oddments box assembly. Slide assembly to rear several inches, being careful not to damage the wiring harnesses. (On re-install, make sure the large gasket around the fuel cap area is properly positioned, before inserting screws.)
8. Remove two screws from each handle-bar top cap trim and remove. Access is from the bottom using a small Allen wrench. Insert the long and short screws into the top caps where they came out before setting the trim aside so you donít misplace anything.
9. Remove the 4 screws from ignition key shroud plastic trim using a #3 Phillips screwdriver. (Thatís larger than normal.) Pry up gently by hand, one side first, and lift off. Turn handlebars to improve access.
10. Loosen the 4 bolts on the handlebar clamps, but not so much that the bar slips down.
11. Remove one bar clamp only. Use a dry brush to clean the grooved part of the handle bar. Apply Locktite to each bolt and reassemble. Repeat the same step on other clamp. Tighten only so much that the bar can be moved up and down, but stays in position when released. This will allow you to adjust the height to your liking.
12. Center the handlebar exactly between the clamps, using the bar grooves as markers. Otherwise, the bar top trim wonít fit properly. Sit on the bike and position the handlebars to fit YOU. Take your time and make sure it is right and that you are comfortable with the controls, mirrors, etc., at the new height. Measure distance from floor to handlebar tips and note the new height. (Simply as a point of reference, Iím 6í 4Ē and raised my handlebar tips a total of 1 ĺĒ and that seems just right for me.)
13. Slightly tighten one clamp to temporarily hold it in place, and re-check bar end height and bar-centering to make sure it didnít move. If you set the bar over a certain height [somewhere around 44" off floor], the top bar trim may not fit properly. Just to be sure, temporarily install the ignition key shroud and bar top trim before final tightening, to make sure the trim will fit.
14. According to the service manual, tighten the handlebar bolts on one clamp, using combinations of feeler gages under each side of the clamp. The goal is an almost identical gap on each side of a given clamp. Repair manual says torque these bolts to 21 nm. Repeat for the other clamp. The feeler gauge approach may sound unnecessary, but BMWís reasoning is that uneven tightening could stretch one side of a bolt more than the other side of that bolt, if the underside of a bolt head didn't contact the clamp face uniformly. This could weaken both bolts, and in a worst case scenario, lead to bolt failure. It could also weaken the aluminum clamp for the same reason.
15. Reverse from step 9 to 2 to reassemble.