The way I understand
http://en.wikipedia.org/wiki/Hydronics#Single-pipe_steam, he has a system where the heater pumps water vapor into his radiator, the vapor condenses, producing heat, and the water flows back
through the same pipe that pumps in the vapor.
If the valve is closed, no steam enters the radiator, so no heat is produced, and no water is produced in the radiator.
If the valve is half-open, I guess the steam flows in fine (in reduced quantities), but the water does not flow back (looks like a design error in the radiator, or maybe it wasn't installed correctly; I guess that such radiators are fairly sensitive to being installed level)
With ever more water in the radiator, the water eventually exits through an overflow valve.