Re: Scored an english armstrong
I've been doing a fair bit of searching into Sturmey Archer gearhub history and it seems that the 'AW' hub was indeed a 3 speed and never a 2 speed. The earlier 1950s hubs do use the 'Low, Normal, High' designation (including the clone hubs made under licence by Hercules and others). Later on the gears were marked as being '1,2,3'. There was a way to convert an 'AW' hub into a 'fixed' (no freewheel) two speed, however this was not a factory offering, but an enthusiasts' clever conversion.
The only two speed hubs made by Sturmey Archer were the two speed 'kickback' hubs (with or without coaster brake) made in the 1960s.
If adjusting the cable doesn't make the middle gear position work you may need to open up the hub and do a little repair work. I have done this in the past myself and it's not as terrible a task as it might sound.
Something tells me that your bike should just have a simple 'hockeystick' chainguard and not a fully enclosed chainguard. The fully enclosed ones are really great though and they do keep the chain clean and make it last longer.