The fact that the tail-skid was shown extended tells me the handle was in the down position (it goes up and down with the gear handle).
Well, actually, with alternate gear extension and no center hydraulics, you normally end up with the gear and gear handle down and the tailskid up at the completion of the checklist.
The handle does nothing for the alternate extension itself without hydraulics but you lower the handle after the gear is down to avoid the Gear Disagree (and GPWS/Config) warning. It is normal to have a Tailskid light and EICAS message with alternate gear extension since the tailskid remains up but the gear handle is down.
That's how it 'should' work. I agree with everyone who is puzzed about the gear up and the tailskid down. Did the tailskid never retract on takeoff? And was the hydraulic leak at the tailskid itself as in the incident that 763 Jock remembers? Maybe the fluid was pumped out after the gear came up through the tailskid retract mechanism, perhaps?