For example, in this video http://www.youtube.com/watch?v=78cYT0jHmYs, the kitchen scene is immediately shown as applied, but my background will just be white and the kitchen is only visible if I open up render preview.

Also in the vedio the assambly has all the visual effect right in the work space. Is there a graphic setter I am not aware of??

If you know please enlignten me. Thank you!!