Hi - here's a thread from '08 that answers your question by Dan and Bo - and some of the best Tudor guys on TRF.
Answer:
Day-Date (non-quickset models)
Pos. 1 - Wearing position:
Fully screwed-down crown. In this position the watch is sealed tight providing full protection for the movement. The watch is ready to be worn.
Pos. 2 - Hand winding position:
Crown unscrewed counterclockwise to the point where it is free of the screw threads. In this position the watch is ready for manual hand winding by turning the crown clockwise approximately 40 full times. If the watch has not been worn for 1 or 2 days, it will be necessary to rewind the watch in order to fully charge the movement and to guarantee that it will run properly.
Pos. 3 - Day and Date change position:
Crown pulled out to the last notch. Position for setting both the day of the week and the date. First, the date is set by moving the hands clockwise past the midnight position two times. Once the date has been set, the day of the week is set by moving the hands counterclockwise past the midnight position two times. The second hand is stopped automatically and will not advance again until the crown is pushed back to Position 2 (does not apply to watches produced before 1972). This is the same position for setting the time.
Pos. 3 - Time setting position:
Crown pulled out to the last notch. Position for setting the time by moving the hands either clockwise or counterclockwise. The second hand is stopped automatically and will not advance again until the crown is pushed back to Position 2 (does not apply to watches produced before 1972). Once the time and date has been set, screw the crown back in tightly to make the watch pressure-proof once again.
Whole thread:
http://www.rolexforums.com/showthread.php?t=43820