A friend just acquired this rifle and scope and we are trying to figure out how the scope adjustments work . . . anyone here have the answer? Thanks so much.

Mike, I just gave a Kahles that is the same exact scope as that one to Lee LeBas 111. It had wonderful optics, but I didn't need it. I would call Le and he can tell you everything about it.
http://learmsllc.com/

I have a Dr. Gerard on a pre-war sporter that is pretty similar to that. The turret adjusts elevation. The knurled screw should be the lock. Windage is accomplished via the opposing bolts on the rear mount, same as a Redfield/Leupold dovetail system. I would imagine the half-cover with the screw in it is the focus. Mine has a full bushing around the tube. Try loosening the screw a turn and sliding it left or right. Could be made to go fore and aft but I've never seen one quite like that.