OK...if I have this right...you are in vertex mode and are picking all of the vertices...NOT the object and they are snapping to the grid. RMB over your geo...see the option "object" click on that then grab your geo and move it. The retain component (or not) I think is mainly for vertices. If you want to snap your verts to a grid or edge you turn that off....When you are in 'object' mode the wireframe will turn green by default.
cheers bullet
bullet1968
"A Darkness at Sethanon", a book I aspire to model some of the charcters and scenes