Read about biopace on Sheldon Browns glossary of bicycle stuff.
I believe the biopace rings should have their long axis in line with the cranks. Oval rings lined up with long axis at 90 degrees to cranks was what caused the knee problems in roadies that poured cold water on the biopace rings when they came along.
On biopace when the cranks are near vertical and the most power can be transferred the rings are at the widest point and thus highest gear. When the cranks are near horizontal the least power can be transferred but the chainring is at its narrowest portion effectively dropping gear and thus helping to maintain traction. Pretty clever stuff for off road riding but they do feel a bit weird to cycle producing a sort of pulsing feeling but usually no knee problems as in the earlier incarnation of the idea.
Cheers