Yes it should raise in the front and lower in the back as you turn the dial, if it isn't working take it back and get it refunded! I have one like that, have never bothered to use the dial, but I've heard if you learn to use it it works great. It doesn't move the peep a lot, but it should be noticeable. Sorry I'm at college, so I can't get a photo to put up.
-Jake