Herding vocab help needed

First of all, congratulations!  You have some fun ahead of you - LOL!

• Controls -- pause, stop, recall (all marked yes):  This just means Luna is under good control - she had to demonstrate that she would stay until told to go, showed some responsiveness to the handler, and came when called.  This shows "biddability" which is highly emphasized in lower-level herding.
• Temperament - Readily adjusts - A good herding dog needs a balance between staying on task and taking suggestions from the handler.  Think of being handed an egg on a spoon, then someone starts shouting commands at you.
• Balance/distance to control stock: some adjustment:  This one is kinda hard to describe.  Think of a hose squirting dirt on the sidewalk.  You need a certain amount of pressure to keep the dirt moving without splattering it everywhere.  You've also got to keep pointing the water the right way.  Sometimes you need more or less depending on cracks in the sidewalk or different textures, or if you pick up heavier dirt.  That's balance.  Herding dogs should be born with some knowlege of how to control sheep using "push" and position, but they also have to be willing to experiment if they run into issues and not get locked into the idea that since they were born with a hammer, every problem must be a nail.
• Approach: Runs modreately wide, runs close.  Hmm.  You may have copied this wrong.  Gathering the sheep requires that the dog run in a circle to contain everyone, but without getting so close that the sheep are scared.  Then pushing the sheep from point A to point B requires the above.  Following too closely means not only that the sheep can be scared, but also the dog can lose control.  When you are trying to work a crowd, you do it from a distance, not from amongst them - you need leverage and the ability to communicate with multiple individuals at once.  Same with the dog.
• Eye: Medium - "Eye" flows from the above concept.  Eye means that instead of controlling the sheep by physically blocking their escape they communicate the notion that "I can stop you from escaping so you may as well move as you are told."  You can physically recognise more or less eye when the dog drops its head and moves further back.  BCs of course have quite a bit as a breed, and lower not only their heads but their whole front end assembly, and they can work from so far back that we measure our courses in hundreds of yards rather than feet.
• Wearing: a little wearing.  Wearing in AKC/ASCA/AHBA land is the opposite of eye - moving back and forth to control and contain.
• Dog shows ready adjustment to: fetching, driving (tending and other not marked):  Fetching is moving sheep TO you.  Driving is moving sheep anywhere else.  Your dog is comfortable doing either, which is within your breed expectations.  Tending isn't something most breeds do - that's containing sheep in free grazes.
• Reads the flight zone well  - I gotta go - I'll answer this one in a seperate post.  :)
  

Flight zone:

Ideally, what you want when you herd is for the sheep (stock) to choose to move along, because they trust that as long as they do so, no harm will come to them.  It's like a contract between dog and livestock.  You (the livestock) move off in the direction I push, and I won't do anything scary.

Livestock are prey animals (ie, they are typically lunch, not hunters).  They have inbuilt mechanisms that get triggered if a dog acts in a certain way - ie, like a predator.  This will happen if the dog does something unfamiliar, or tries to do something new with them, or if the dog just acts silly as a young dog might (chasing, splitting, biting).

When these mechanisms are triggered, the sheep no longer will act in a conscious way.  Instead, they'll be in a flight-or-fight response mode.  This is scary for a dog because herding dogs' instincts are set up to control sheep that act consiciously, not just reactively.  In other words, when the sheep start flying around pell-mell, it's uncomfortable for the dog because they often don't know how to undo the situation.

A dog that "reads the flight zone well" has an advantage here because the answer is to get back out of the sheep's way, act as unpredatory as possible, and let the sheep settle down into thinking mode again.

People compare this to a bubble - touch the bubble, and the sheep are disturbed and the dog needs to work to get things under control again (and most likely will need help, too).  I don't like the bubble image because it often fools novices into thinking that "the bubble" is a physical location around the sheep.  There are some physical aspects to it, but you read "the bubble" by the actions of both the sheep and your dog.  Calm sheep, responsive dog - you are outside the flight zone.  Wacky sheep, dog that's not listening - dog has impinged on the flight zone.

At higher levels of herding, you'll hear the terms "distance" and "pace" used.  This is the same concept.

Hope this helps! 

 Brookcove, you rock! Thank you so much for explaining all of this too me. Herding is a blast. I honestly didn't expect to like it as much as I do, but it feels like team sports from when I was a kid.

 Congrats on the instinct test! I agree, I did not expect to enjoy herding as much as I do. I have a lot of fun with it though! It's great to work with your dog like that.

http://www.grandin.com/behaviour/transport.html

Spend some time here.... fascinating

http://www.managingwholes.com/cote1.htm

Here too.