The valve should be open when physically flushing the head. Then, when the toilet bowl has cleared of paper and effluent, move the lever to the dry position and continue pumping for 10, 12 or more strokes. If the head is in good shape, the dry flushing will push the contents six feet or more through the hose(s), just from the compressed air pressure of pumping the toilet, and should clear the lines between the toilet and the holding tank.
This will result in you using the least possible amount of water, and will extend the time between holding tank pumpouts. With Lake Champlain being holding tank-only, I'm sure that is one of your prime considerations. Additionally, keeping the lines as empty as possible will reduce chances of the connecting hose permeating over time, and causing the boat to stink. When a hose permeates, the sewage odor goes right through the walls of the hose and into the living areas of the boat. Once that happens, the only way to stop the smell is to replace the hose(s).