You are on the right track, Charlie - definitely put in a couple of buckets of very hot water into the machine and let it sit for a good half an hour or more before starting the machine up. The seals on a dishwasher that has been lightly used and then stored will have dried up and possibly shrunk, but the water will expand them again.
When you say the hoses don't go all the way back into the cabinet, it could be because they are brittle and have a permanent 'loop' in them. When they are nice and flexible, they will naturally bend as they are put back into the cabinet but over time, and especially if they harden, the 'bend' will remain. Check the condition of the hoses to see if the rest is flexible and don't try to force them. I really messed up the hoses for the 62 Mobile Maid that way! The good news is that a replacement hose assembly can still be found relatively easily - if not from Sears, for sure on eBay or at your local appliance parts store.
Hope this helps and that the machine does still work! I love the Roto-Rack models - hope you can post some pictures soon, too!!