Cornish Jack:
Your story is essentially correct! When Igor reported to the United Aircraft Board with the results of the first several months of testing, he used extensive films to illustrate the (then) wonderous maneuverability. An astute Borad member asked why there was so much sideward and rearward but little forward flight depicted on the films. Igor answered, "Yes, we are still working on that!"
Note the aft rotors lifted vertically, allowing them to establish longitudinal trim. This was one way out of the jam (which was caused by the natural backflap of the rotor, and eventually solved by making the longitudinal cyclic twice as powerful as the lateral.)
It was a wild time, as told to me by the fellows who did it, most of whom retired in the first 5 years of my career. I had the thrill of working with the fellow who drove the parts car that accompanied the first helicopter ferry flight from Stratford to Dayton (with a white circle painted on the roof for better identification!), the engineer who helped Igor rig the first VS-300, and the crew chief of the S-42 when it made the Amazon flights with Charles Lindbergh at the controls.
It is wonderful to realize the youth of our industry, and to realize that many things that we see as difficult that will someday be taken for granted.
I admire those who try new things, especially when told it won't work!
Igor once said that it was good when the test pilot was also the designer, because that way bad designers were quickly weeded out!
He died at the age of 83, so by definition, he was a good designer!