Instructables

Step 5: Carve out blade section

Finally, you must carve out the area where the dado blade will fit in. This is where the position of the bolts is important. If the bolts are too close to the blade, they will need to be moved or the blade lowered.
Raise the blade to about half way up the fence, or about an inch, no more. If you think you will be making rabbets deeper than 1", make it higher, but not as high as to weaken the fence.
Trace the outline of the blade onto the fence. Now, you can either cut out the curve with a band saw or jig saw, which is much safer, or you can cut it out with the table saw which is not as safe.
To cut it out with the table saw, raise the blade so that the teeth are just on the bottom edge of the wood. You will slowly need to nudge the wooden fence over the blade to carve it out. Be careful not to go all the way to the metal fence as this will dull the blade quickly. Do this repeatedly until it is at the desired height.

And there you have it! You now have a perfect little cutout for the dado blades to sit so you can finely adjust the distance of them in the fence while having a straight fence to cut on.
 
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