It seems to be working fine, as demoed in the tutorial. I suggest you try it again, with very simple objects, to get a feel for the relationships. Try something like this:
What you are describing is usually caused by accidentally transforming multiple levels of a hierarchy at once, instead of just manipulating the top level and letting the child object automatically inherit the transform. Be careful of exactly what you have selected when moving and rotating your instances.
Technical Director - C4D, Maya, AE, - Washington DC