take off the boot, and look fot the cable that comes in from the rear of the handle. It should go to one side of the e-brake handle. there is an adjustment nut where the cable meets the e-brake...adjust that.....
I assume you havbe rear drums. The rear handbrake adjusts by using it. Try backing up slowly and pull up hard on the hand brake. Do this several times. Going in reverse doesn't self energize the brakes like going forward, so you may be able to bring the shoes up tigher going in reverse. Aditionally, step on the foot brake when you set the hand brake. That way, you'll have the power assist to really push the shoes against the drum. The hand pull only really doesn't have much power behind it.
The freeplay in the handbrake depends on two factors, (1) wear/adjustment of the brake shoes (assuming non SVT with drum rear brakes), and (2) stretching of the handbrake cable/mechanism wear.
The rear brake shoes are self-adjusting, the handbrake linkage/cable itself is not. The rear shoes self-adjust by application of the brakes in reverse (no need to use the handbrake, the normal brakes do this better). Simply find a parking lot or your driveway to go backwards, firmly brake, go forwards, firmly brake, and repeat this a few times. Each time you do this, the self-adjusting brakeshoes can tighten themselves up a "notch."
If the freeplay is from the normal stretching of the handbrake cable over time, you must adjust the cable as in the proceedure NorCaLarry posted a link to.