Yes vertical balance should be conducted first, then horizontal balance with the balance set. Meade in their infinite wisdom has not yet made a 2 D weight set of the LX200 range. So you will need to either modify a meade weight set or buy a set from one of the manufacturers. Don't forget to put a couple of sinkers in the left fork arm battery container also. This will help keep the gears nicely engaged. The site that Mick supplied is really good for explaining how balance should work.
Hope you find the balance you need.
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