David - yeah, I have the ground plugged into where the tutorial shows. I've used both the 1x and 10x probe that came with the scope.
For reference, here's the tutorial: The behavior your describe where the line "bounces" up is what happens. With the variable voltage knob on the generator, the line will ease up and down as I turn it. Maybe it IS working then? I expected a sine wave based on the PDF from the tutorial. I link that here: