On a Z06, to lower either the front or rear, you must cut off part of the "pad" on the end of the adjusting bolts. The most difficult for me was the front, as I had to loosen the upper A-arms and lower shock mounts to get the adjusting bolt out. On the front, I cut off the first section of the pad.
There is a link to a good set of lowering instructions on the C5 Registry FAQ page. On my car, lowering about 1" caused the front to gain about .5-.7 degree negative camber, so that had to be taken out of each side. Reducing the camber caused the toe-in to increase, so I had to adjust that too. But it lowers the center of mass of your car about 1", and that improves the handling a lot.
There is a link to a good set of lowering instructions on the C5 Registry FAQ page. On my car, lowering about 1" caused the front to gain about .5-.7 degree negative camber, so that had to be taken out of each side. Reducing the camber caused the toe-in to increase, so I had to adjust that too. But it lowers the center of mass of your car about 1", and that improves the handling a lot.