Probably the reason the second hand is doing that is because the charge level is very low. Try charging the capacitor up first before any attempt to reset the time/date.
I don't know about the "crunchy" bit but mine will not do anything if the charge state is too low.
To charge the capacitor you can try using the "violent" version of the "Seiko shuffle". Swing the watch, face up, in an arc of about 90deg's back and forth for about 200 repetitions. You might find that the second hand ticks normally. You might have to "shuffle" for about 500 repetitions before any response depending on how low the charge is. If that doesn't work you could be looking at replacing the capacitor. If so I am sure someone here could help you.
As regarding a value check the auction sites for broken watch values.
Good luck.