1 qt. is the whole distance of all the "X's". IE, from the "Full" line at the top to the "Add" line at the bottom = 1 qt.

The level of the crankcase can be ANYWHERE between the "add" and "full" lines. It does NOT have to be "FULL" at all times.

 

Ok after reading this post I feel better. I noticed that my oil level was a little over half-way between the H and L marks on the dipstick and I changed it about a month and a half ago. Topped it off this morning.