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How to calibrate your Oculus Rift
The calibration is required to enable magnetic yaw correction.
Basically, this stops the Oculus Rift from drifting.
To calibrate your Rift, bring up the configuration utility.
Clicking the "Calibrate" button brings up the calibration interface.
And this is where people are starting to having problems because, as you can see, the calibration directions aren't exactly clear.
What you should actually do is rotate your device about its three axis 180 degrees each direction, as shown on the picture.
Once you're holding your Rift in your hands and ready to start the calibration, click the "Start" button.
Now you have to rotate the device.
Exact order is irrelevant, you just have to rotate it about its all three axis.
As you rotate your Rift, the progress bar will slowly fill.
Once the calibration is finished, the progress bar will instantly jump to 100% and turn green.
After that, you can put your device down and just press "Save".
And this is how you calibrate your Oculus Rift.