A B757-200 FLC IS ASKED TO 'CIRCLE A BIT S' BY LCL CTLR FOR SEPARATION FROM A DC3 STILL ON ACTIVE RWY. CTLR IS SURPRISED WHEN B757 STARTS A 360 DEG TURN 5 MI W OF TJSJ; PR.

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SIT: A DC3 WAS PLACED INTO POS AND HOLD WITH A B757 5 MI FINAL. TO GAIN SOME TIME; THE B757 WAS INSTRUCTED TO 'CIRCLE A BIT S' FOR SPACING SINCE THE DC3 WAS TAKING EXTRA TIME TO ROLL. THE B757 WAS INDICATING 170 KTS. SINCE OUR RWYS DIVERGE; IT IS NOT UNUSUAL TO SEE AN ACFT TRACKING ON THE ILS TO BANK ON AN APPROX 2 MI FINAL TO PROCEED STRAIGHT IN TO RWY 8. THIS IS WHAT WE (TRAINER AND I) EXPECTED WHEN WE REALIZED THE B757 WAS TURNING TOO FAR. I ASKED THE B757 WHAT WERE HIS INTENTIONS AND HE SAID HE WAS DOING A 360 DEG TURN AS I ASKED HIM TO. I QUICKLY COORDINATED WITH THE APPROPRIATE SECTORS AND GAVE EXTENSIVE TFC CALLS TO MAINTAIN STANDARD SEPARATION. THERE WAS NO LOSS OF SEPARATION. THE PLT THEN CALLED THE FACILITY (ONCE HE LANDED) TO INQUIRE ON WHAT HAPPENED; AND SAID HE UNDERSTOOD 'CIRCLE' TO MEAN 'MAKE A 360 DEG TURN'. THERE ARE PROVISIONS IN THE FAA ORDER 7110.65 (PARAGRAPH 4-8-6) FOR A CIRCLING APCH. MISUNDERSTANDING 'CIRCLE' FOR 'MAKE A 360 DEG TURN' COULD CAUSE UNNECESSARY LOSS OF SEPARATION IN THE FUTURE. PLEASE MAKE SURE APPROPRIATE AUTHS (PLTS) ARE MADE AWARE OF THIS TO AVOID CONFUSION.