Hey John,
The technique that I use is fairly simple. First select the colours of pastel that you want to use, here I usually choose earth tones anywhere from gray through brown. Then grind the pastel stick down into dust with a peice of sandpaper. Then I use a course brush called a stencil brush to scrub the chalk dust into the nooks and crannies. For an overall dusty efect, I use a fan brush and apply the pastels working from the top of the vehicle to the bottom with heavier amounts applied to the areas that would accumulate more dust, horizontal surfaces and areas that are closer to the suspension.
This is the last step that I do when finishing a model. After the dust is applied, the model can no longer be handled with the bare hand. Some people seal the pastels with a light spray of dull cote, but I don't like that finish myself.
Happy Modelling and God Bless
Robert