If you are wearing your watch daily you should not have to wind it at all. I'm assuming you bought this watch used. You will probably have to have it serviced by a competent watch repair shop that deals in Rolexes.

The watch is a 1970s Rolex according to the seller with a 1 yr warranty. I wound it up more than 25x. The seller advised me to send it back (I'm assuming at my expense). I will give him a chance to fix the watch. But I'm new at this and therefore want to know what I should do if the problem persist? In your opinion:
1)should I ask for a full refund?
2)should I ask for a replacement watch?
3)should I let him fix it one until the watch is in working (excellent) condition?
Thanks again for the great advice/info. Because of you guys I still have faith in Ebay.

I would go with either choice #1 or #2. If you are a stickler about these things you can ask for a refund. If you like the watch and just want to see it working properly, follow through with the provided warranty. People that get into Rolexes, care about genuine parts being used in repairs, I am one of these people. However, being an older Rolex, at the lower end of the price spectrum, some people may not be as anal. Its, just a matter of preference. But it is something you may want to enquire about. As for a replacement: Rolexes vary widely, by age, metal, dial, stones, bracelets, etc. So this is easier said than done. If you don't know what to look for, you may end up getting a less valuable watch.

Appearance wise the watch looks great. But I'm worried about the mechanics of the watch, i.e. using genuine Rolex parts. If he isn't using genuine parts, the quality and longevity of the watch may be lessened. I just don't want something else to go wrong after the warranty is up. I am aware the watch is in the lower end of the spectrum, but I still have high expectations since it is a "Rolex". Again thanks for the comments!