After all the turning when I measure my front right and left the right side is about 1/4" higher. At this point should I work with the height sensor?
No.
Cross levelling adjustments cannot be done with Height Control Sensors.
The LC100/LX470 AHC system is a two-channel system -- Front and Rear only. It is not a four-channel system as would be required to adjust heights at each of the four wheels individually.
For height control, the ECU will reduce the voltage signals from the two Front Height Control Sensors to one value and then using these Sensors and the AHC Pump and the Levelling Valves, will attempt to find a height position at N or at LO or HI -- whatever is selected at the console switch -- that best matches the programmed value at N or LO or HI (for example, ~2.25 volts at N -- which corresponds to ~zero inches or millimetres at N on Techstream or other scanner).
If cross-levelling is attempted with Height Control Sensors the guaranteed result will be confusion and frustration -- and possibly end with the voltage signals from the Height Control Sensors being so different that ECU cannot resolve them and adopts the "fail safe function" which prohibits height changes by AHC and prohibits variable damping by TEMS.
Instead, always start any AHC adjustments, or checks, by cross-levelling the Front on level ground like a garage floor (not in the street), with engine OFF, using a tape-measure and the torsion bar adjusters to equalise Right and Left hub-to-fender measurements.
Measure this cross-level at N height. It can be easier to turn the torsion bar adjusters at HI height -- no problem with that -- but always check the final results at N height. Don't worry about the actual tape-measurements at this stage -- just make Left and Right equal -- FSM says within 10 millimetres = 0.39 inches but try to do better. [NOTE: If there is wear and tear or damage in the Front OR Rear suspension, this can be more difficult than it seems].
With cross-level correct, 'ride height' is set with the Height Control Sensors as described by
@BullElk in Post #11 this thread.
Within the range of adjustment of the Height Control Sensors, choose your preferred 'ride height' at N, increasing it if desired -- the so-called 'sensor lift' -- just be careful that (1) enough droop remains when the suspension is fully extended, and (2) wheel alignment is checked and adjusted if necessary.
The ECU is permanently programmed to use the AHC Pump and the Levelling Valves and the Height Control Sensors to seek the correct voltage signals that match N height when N is selected at the console switch (means a Sensor signal of ~2.25 volts and showing ~zero inches or millimetres on Techstream). These ECU settings CANNOT be changed. Likewise there are permanently programmed non-changeable ECU settings for LO and HI heights.
What CAN be changed is the position of the Upper Control Arm relative to the potentiometer arm inside the Height Control Sensor. This is what is being done by moving the Height Control Sensor adjusters.
Whatever is done with Height Control Sensor adjusters, when N is selected at the console switch while the engine and AHC system is operating, the ECU always will cause the 'ride height' to change until it finds a Sensor signal of ~2.25 volts and shows ~zero inches or millimetres on Techstream -- which is correct for N height. When LO or HI is selected at the console switch, the ECU will cause a response which matches the permanently programmed settings for LO or HI height respectively. This fundamentally is how the AHC system works -- UNLESS there are adjustment faults or faults in the Sensor or the connector or the circuit/harness (or in the ECU -- very rare), but all of those faults are another story ....
