Exposed filter doesn't update the view???

Hi,

I'm still a little confused as to how exposed filters are supposed to work:

I've set up an exposed filter as a select list in my view (which is in a block); the exported view is shown in the first attachment.

I expected that when the user set the filter parameter to a given category and hit Submit/Apply, the view would come back with a new set of values reflecting that choice. When I use preview mode(see attachment 2), that is exactly what happens. When I look at the 'live' version(attachment 3), with the view in a block on a page, and do the same, I get redirected to my front page instead.

I had to enable Ajax on the view to even get the exposed filter to show, as discussed in these:
drupal.org/node/1115782 (Warn that exposed filters don't display on blocks if ajax is off.)
drupal.org/node/525592 (views_embed_view() + exposed filters button = homepage redirect)

I have Ajax enabled. Views are not being cached. Using Views 7.x-3.3 w/ D7.12 on Chrome.

What do I need to do to make the 'live' version of the view redirect to the view (or same page) so user will see updated list(as w/ preview)? I'm really not a PHP programmer, so I don't want to have to modify code if possible (I can read it, if it helps in explanations).

TIA for any suggestions/pointers

Jeff