I received my sturmey archer CS-RF3 hub. Naturally I immediately infatuated it in the drops, threaded in the indicator, and connector, and started turning the freehub. At all positions of the indicator, one revolution of the freehub produces one revolution of the hub body. Hmm?. Does there have to be resistance to hub rotation for the gear ratio to change?. This is a bare hub, no wheel built up yet. I've ordered some VO Diagonale 650B rims.
Hmmm... I would operate the gear indicator a couple times and try again. If it's like other S-A hubs, the default gear is "high" and the hub shell should turn 1.3 times for every turn of the freehub. As you surmised, it make be hung up in the "middle" gear until pedaling tension allows the sliding clutch to engage high gear.