Okay so I am going to post a pic of my not so good looking yard (long story) and you all tell me what you think of the length? I will measure later and post up the exact length.

I have been tryin to read on what height the yard should be cut at. Found that the lowest setting on the mower is the best mow at? Is this the case??

Since you lawn is newly sodded, I wouldn't mow it too low. I would shoot for 2.5" tall. This is a good height and looks good mowed with a rotary mower. I would only consider heights of 1" or less if you have hybrid Bermudagrass and you have a reel mower. A rule of thumb is if you start seeing seed heads appearing its a good time to mow the lawn. Here is a Bermudagrass guide that should be helpful.