I'm wrong about the bytes being X and Y positions, that's what they appear to be at first but they're both used in positioning. $00 is the upper left corner, $02 is one tile to the right, $04 is two tiles, etc. Once the end of the screen is reached it drops to the next line and continues. Once $FE is reached the second byte becomes $01 and the process repeats. Pretty simple:
$0000-$3E00: First line
$4000-$7E00: Second line
And so on.
Edit: Here's an example of what I mean, pay attention to the positioning of the "RHand" text:
The is at $0000. As you can see it's in the top left corner.
Here it is at $4200. It's on the second line and indented one tile.
And here's what it looks like at $FE00. The game automatically starts printing any spilled over text on the next line.
Lastly, $0001. See how I got confused into thinking the second byte controlled the Y offset?
