Appreciate all the feedback.
I just went through the procedure outlined by Cpt. Orso and had the same outcome. The little airplane symbol moves, but the waypoint does not. The weird thing is that when unbox DATA I find that my waypoint did actually get moved. It's like I'm in some sort of 'opposite reference' mode. For lack of a better way to describe it... moving the mountain to mohammed, instead of mohammed to the mountain. I have a funny feeling that I'm somehow adjusting my own position, or some other reference coordinate system, instead of my waypoint's cords.... or something akin to that. Just guessing now.
Also, I'm having issues with my HUD not giving me waypoint bearing indicator on the HUD bearing tape in NAV mode... or a distance to the waypoint. I do get a circle icon in the HUD marking the waypoint on the ground when it's in the HUD field of view, but I have to designate it as the Air-to-Ground INS point, and switch to AG mode to get a range to the waypoint. A clunky workaround. Could these symptoms be related to my initial problem? I believe I'm properly aligned on the INS. How else would I be getting ANY waypoint info if I wasn't?