Thank you all for the responses! It's so great to have a community like this.
I will be experimenting with the different switch positions and my amp settings. I was just wondering if there was any rule-of-thumb on how the switch was supposed to be used; and based on your responses, it sounds like its all based on what sound you're after.
Bootlegger, you're absolutley right.. I picked this guitar up really cheap because this is my first electric (i play acoustic) and I didn't want to invest $$$ not being sure if I would enjoy playing electric. I read the reviews on the EVO, and most of the people highly recommended it for the price. So far I'm having a blast!
Thanks again to all!