Hello Kevin,
One thing to note is that you will never see yourself show up as any position that you log in on, observer or otherwise. You will also never see yourself in the controller chat listing anytime you are logged onto a position. It is only there to show you all the other controllers that are online. Observers also don't get "credit" for ATC hours.
In answer to your other question, congrats on passing the VATUSA S1 Academy! Your next step if you have not already is to request a transfer to the ARTCC of your choice, where they will do the practical training of your S1 and get you ready to control on the network. Until that happens, you should continue to log on as an Observer! Hope this helps!