By "exposure wheels" I infer you mean the two small wheels between the lenses for setting aperture and shutter speed. Yes, those should move regardless of whether there's film in the camera, or whether the shutter is cocked, or anything else. They can get stiff with age and lack of cleaning of the mechanism, but you should be able to budge them.
As for the shutter release lock, there should be a couple of little pictures next to the release button showing an arrow pointing downward. Move the lever next to the picture that shows the arrow passing through the curved line below it (i.e. the curved line represents a block on the travel of the release button). If the shutter fires when the lever is in either position, the lock isn't working.
The shutter release button should spring back -- probably gummed up (like everything else you described).
This is too bad -- sounds like you've got a lemon. I'd tell KEH the problems and send it back to them -- maybe they'll fix it, or refund your money. Would they give you a partial refund and let you keep it? If so, a good CLA should take care of it -- Krimar could do that quickly for beween $300 and $400, and you'll have a terrific camera.