1997 4Runner e brake
 

I put on new shoes and now when I pull the e brake it moves the adjuster. So the brakes get too tight
all the hardware looks ok

I've seen this before, loosen the parking brake cable, adjust the rear shoes, readjust the parking brake.

How much slack should be in the cable

slack it off all the way, adjust the rear shoes until they drag then back them off a little then adjust the parking brake cable until it grabs good with about 7 to 8 clicks of the handle and no drag when released.