I understand the concept of ranging using the mil dot system, simple formula of target height x 1000/ #mils. But from here I'm kina lost as to how to adjust for that distance that I just ranged. I was under the assumption that each vertical mil dot represented a different range, for example, center would be lets say 200m, then every mil dot under it would be an additional hundred meters, is this correct? I know thats a very broad assumption, but before I start getting very percise I'd just like to understand how to adjust for distance. I'm thinking I won't be shooting out more then 500m for the time being.
Also, I have a variable scope in the front focal plane (reticle stays same..not to sure if thats front or not, NcStar 3-9x50) and I'm not to sure if I'm supposed to be fully zoomed in or out to range. I bought the scope from a local shop, no manual in the box, called NcStar and guy on the phone said to be in 7x magnification? To me it makes more sence that I should be zoomed all the way out(3x) to range and zoomed all the way in(9x) to make adjustments?
I need some help.

Also, I have a variable scope in the front focal plane (reticle stays same..not to sure if thats front or not, NcStar 3-9x50) and I'm not to sure if I'm supposed to be fully zoomed in or out to range. I bought the scope from a local shop, no manual in the box, called NcStar and guy on the phone said to be in 7x magnification? To me it makes more sence that I should be zoomed all the way out(3x) to range and zoomed all the way in(9x) to make adjustments?
I need some help.