Tank still fills when we are using direct drain feature

We have the Arcticaire ADR4066 and have installed a cut piece of garden hose to use the direct drain feature. We got the unit yesterday (Friday, Sep. 22/06) and have noticed that instead of draining through the hose, the tank still fills up. The hose is connected to the nipple, as per the directions, but the water is still coming out of the hole on the opposite side.
Are we missing something? Have we overlooked something simple?
Thanks!
I am having the same problem. Unit is brand new. I determined that the knock out in the direct drain opening was removed and that the hose was not clogged (somehow blocked although new). The unit still fills the bucket first and then shuts down. The instructions (which did not come with the unit and I downloaded from mfgs. website) gives no instruction other than to attach the hose. I assume you have to leave the bucket in place and the unit knows to drain via the hose if the knockout is removed and the hose is attached. Confusing.......in that this should not be a problem with a new unit, never previously operated.