It sounds like you're missing one leg. The motor and timer use 120 and the heater uses 240. So if you have one leg and neutral, it will behave as you describe. Take your voltmeter and check the voltages. Each hot to neutral should be 120 volts, hot to hot should be 240.
The old wiring tied neutral and ground together in the dryer. There is probably a jumper at the terminal block where you connect the dryer cord to tie neutral and ground together; this jumper is removed when you use a four-wire receptacle.
Obviously the four-wire setup is safer than three-wire; if it wasn't the code wouldn't have been changed. Nonetheless, there are millions of dryers using the old setup with no problems. On the other hand, two dryers on the same 30 amp circuit is a definite no-no.
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Today's Featured Article - Fordson Model N: Field Service Operations and Lubrication - by Anthony West. The daily or weekly servicing of any vehicle is of the utmost importance, and in days gone by when our favorite tractors were doing an important and Commercially vital job on the farm, these service operations would make a major difference to the running costs and economy of the farm. This being so, it surprises me to see how many enthusiasts attending rallies, shows etc, seem to be unaware of the importance of this constant attention. Possibly the modern machine with its 6,000 mile or even once
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