Okay, so few questions: What color is your hubwheel and what are the values you see in your status bar? For instance, mine is orange (because I'm horrible about dismissing notifications) and has the values 6 and 9
Then you have no notifications, you have 1 badge to give and you have received zero badges from other Hubskiers. You now have a badge to give to another Hubskier if you so choose. This could be for a post or a comment that you deem worthy. Once your wheel goes around fully, what you receive is the ability to give a badge. Does that make sense? Also, you should now be able to add community tags to posts, see the +# next to other peoples posts? Welcome to the club. Let me know if this answers your questions.
Oh, so LEFT to the wheel I see the badges I own currently to give away, and RIGHT to the wheel I see the total number of badges I've received from other people? Or can't you pass on the badges you get from other people? I guess no, to avoid inflation, that makes sense... Yes, the tag thing works, that's why I was extra confused! Also, a graphical glitch in Opera makes it look like the left number belongs to the notifications, that was extra confusing too I guess: