The Return Suds portion of the timer is an independent portion of the timer, meaning that once the timer runs through each of the increments that it will stop and not advance further.
The user would then select the cycle of their choice, and with the full water level option, it will normally fill with some fresh water at the beginning of the cycle to then satisfy a full tub fill.
To save suds, this is where the Maytag differs greatly from a Whirlpool/Kenmore, as you have the choice to save your wash water with the SAVE SUDS button, rather than it being mandatory on a Whirlpool/Kenmore. With the SAVE SUDS option selected, the diverter will engage at the beginning of the spin drain, and will release just before all the water is saved, and flush the remaining down the drain. From what I've read/heard, this was meant to ensure that the same amount was saved so that fresh water would be added for the next suds return, and also any sediment would be flushed, rather than saved.
I agree - doing this in person is much easier than trying to digest this through instruction. And much more fun!
Ben