Jeff,
I always render to a file so I do not know whether it changes anything if you don't but once you do the Radiosity render the selector 'radio' buttons will show the last thing that was done with that option. Modify Viewpoint will show the unrendered view, Radiosity shows that (the one you have just rendered, Rayrace will show the previous raytrace. After you do Step 2 (Raytrace) it should show the latest fully rendered view, Radiosity will show the latest and Modify will show the unrendered image.
When you are on Modify Viewpoint you should see the movement buttons become active and you can then use them to move around the model. You then only have to do the Rayrace again as the whole model was done by Radiosity. Only takes a few seconds. However if you are on Modify and have not raytraced again then the Radiosity and Raytrace buttons will still show the previous views.
Re the washed out problem. I can get consistent results all the time but ONLY if I open and close the program between radiosity renders. The Reset does not work for me and the images get brighter an become totally white on the third render. Restart the program and rendering is perfect again. I feel sure there is an issue here as it seems others who have used Radiosity are getting similar effects. At least restarting is a workaround (for me anyway).
Allan