How should I set up my rear shock (with ProPedal) to minimise bob when climbing?
Pro-Pedal provides bob resistance when on, 1 being lowest.  

Try this.  Pull out the numbered knob and position it so that "3" is in line with lever.  That will give you the most Pro-Pedal.  Now, try riding up a hill with it off and again with it on.  You should notice markedly less bob with it on.  If not, I might take it to a shop to make sure that it is working.