Spikey, your post has already more than 250 views so I assume that if nobody answered yet your question about zeroing your pre-WW2 Khales 4x60 it is because nobody had an answer; I would therefore suggest to raise the question in the folder "Sporting Equipments", as some fellow members may not be interested in MS rifles and may have not read your post.

As pre-WW2 Austrian rifle scopes are - I assume, technically more or less similar to pre-WW2 German ones, I have pasted below two posts from other forums on the correct way to zero pre-WW2 German rifle scopes; the advices may hopefully apply to your own rifle scope.

http://www.germanguns.com/upload/archive/index.php/t-1304.html
From Axel E (Louis' comment: Axel is Kuduae on the NE Forum)
No, I have never seen a "manual" or "instructions for use" for the Diatal (light alloy tube with mounting rib) and Diasta (26mm steel tube) Hensoldt, later renamed Zeiss (West) series scopes.
As I have worked with and on about a dozen of these, maybe I can give some hints:
• After removing the protective cap you find a black plate, knurled around the edge for adjustment turning. You see four screws holding this plate, three black and one silver. whitie already found out, the silver screw is for locking the adjustment, so keep it backed out until after final zeroing.
• Around the black plate you see a ring with an index mark and either a tiny pin, hole or stud for turning the ring. Most of these rings are of silvery metal, late ones of some plastic. On the underside of the ring there is a stop that limits turning either direction to less than one turn. Apparently, this severely limits adjustment, but it ain't so. If you have turned the adjustment to the stop, loosen the three black screws and turn the ring only back a half turn. Continue sighting in.
• After sighting in the rifle, you may again turn the ring only so the index line on it is opposite the tiny line engraved on the scope tube behind the adjustment turret(s).
• There are neither clicks nor factory index marks (except one). The ring is meant so you may sribe your own reference marks on it. So, sighting in is by trial and error. Turning the adjustments clockwise makes the rifle shoot up/right and vice versa.
• On older Hensoldt Diatal/Diasta scopes the adjustment may be very hard to impossible to turn, especially in cold weather. Cause: Hensoldt once put lots of a grease into the adjustments. This grease often has hardened solid over the years, effectively glueing everything.
• Cure: Remove all four screws. pry out both the top plate and the ring, clean these from all dried gunk. Use toothpicks or so and scrape out all the grease you can get at from the turret. Put a LITTLE drop of oil in there. Reassemble.
• Despite the less than perfect handling of the adjustments these Diatal/Diasta scopes are still unsurpassed optically and mechanically, better than most scopes availble today. I use such 4x scopes almost exclusively for my own hunting. I also use Zeiss Zielvier and Zielsechs scopes sometimes, but these Hensoldts are superior.

http://www.opticstalk.com/hensoldt-diatal-8x52-zeroing_topic43076.html
Instructions for sighting in Zeiss (Hensoldt) riflescopes:
• After mounting a riflescope on a weapon, the gunsmith zeroes the riflescope for a specific range, i.e. the line of sight is aligned with the bore axis of the barrel in such a way that the point of impact and the aiming point coincide at a specific distance.
• As the trajectory is curved, the bore axis and the line of sight form an angle which is dependent on the type of ammunition used and the range. At longer or shorter ranges than the sighting-in distance or when the line of sight is not horizontal (in the mountains), the shooter will aim above or below his target to compensate for the difference in distance.
• If a riflescope is correctly mounted on a weapon, it is generally not necessary to readjust the line of sight relative to the weapon. If a re-adjustment is necessary for special reasons or if a riflescope/weapon combination is to be zeroed for a new range, proceed as follows:

• Unscrew the protective cap (1).
• Only loosen the bright, chrome-plated screw (2). Do not loosen the three dark, painted screws (3)!)
• Using the knurled disc (4), you can now adjust the reticle as required. To correct a high shot, turn the disk (4) counterclockwise.
To correct a low shot, turn the disk (4) clockwise.
• Re-tighten the bright screw (2); do not use force, otherwise the fine thread of the elevation adjustment will be damaged.
• Check the point of impact. If necessary, repeat the procedure as described until the result obtained is satisfactory.
• Loosen the three painted screws (3).
• Turn the graduated ring (5) until its index line is opposite the marking (6). This index allows you to make adjustments of a defined magnitude during sighting in. In addition, this index enables you to find the zero position again if, in special cases, the adjustment was changed. The index can also be used to indicate the reticle adjustments for other ranges and types of ammunition after additional markings for these ranges and types of ammunition have been provided.
• Re-tighten the three screws (3).
• Screw the protective cap (1) back on. Take care not to squash the rubber gasket (7)!. To correct the windage adjustment, proceed in the same manner.
To correct a shot to turn left, turn the disk (4) clockwise.
To correct a shot to the right, turn the disk (4) counterclockwise.
Adjustment range of the reticle in cm/100m ( in./100yds) at one revolution:
• Diasta/Diatal 4x32 100cm/ revolution (36 in./ revolution)
• Diasta/Diatal 6x42 70cm/ revolution (25 in./ revolution)
• Diasta/Diatal 8x32 50cm/ revolution (18 in./ revolution)
• Diavari 1,5-6x42 110cm/ revolution (39 in./ revolution)
• Diavari 2,5-10x52 65cm/ revolution (23 in./ revolution)

Please tell us how it works, and post photos when you can.

Louis