Steve,
A guess on the 1 & 2 switch would be two power settings. The stickout distance will be 1/2" to 3/4". Your travel speed will have to be fast enough to keep the arc on the leading edge of the weld puddle. If your speed is too low, slag may become trapped in the puddle. As was mentioned, flux core tolerates a little wind (and since it is so smokey this is good).
I'm sure others will have some good tips for a beginner. Many sites like Lincoln, Hobart & Miller have tutorials on each method.