What are the penalties for each range section? Where are those rules?
A dagger's Ranges are Short 1, Medium 2, and Long 3 (Player's Handbook (1978) 38). These measurements are in inches. For weapon ranges and some other game elements, 1" is 10 ft. indoors and 10 yards outdoors (see the PH on Distance (39)).
In the Dungeon Master's Guide (1979) beneath each attack matrix is the note Missiles: −5 at long range, −2 at medium range (74 et al.). One can pretty safely assume that this penalty applies on the to-hit roll and that, because it's unlisted, there's no penalty for short range.
On the DM screen it shows:
In the Hurled Weapons and Missiles section:
For Daggers: Short Range 1'', Medium Range 2'', Long range 3''
and as @Hey I Can Chan mentionned
1'' is 10ft (2 squares in my game) for inside and 10 yards for outside (30 ft wich is 6 squares in my game) or x3 outside if you prefer. (I'll ask my DM to change it to 1'' being 1 square)
No penalty for short range -2 penalty for Medium Range and -5 penalty for Long range