Thank you again Alexey,
I believe that was the problem. The model moved after I did as you suggested. We'll see how the report turns out.
A related question though: I was told to import the images and change the projection from Local Coordinates to WGS84 before importing the GCPs. Then after importing the GCP data, change the image projection of the images to match the GCP projection (which I obviously did incorrectly). Would you agree with this or should I put in the projection that I know I'll be outputting into the images after import?
Susan