this is exactly why you never wanna believe all you see on tv.
it is a physiological fact that when glucose stores are low enough, the body begins to convert protein to glucose via gluconeogenesis, and converts fats to ketones.
that's why too much protein can keep you out of ketosis (or it'll take longer to reach ketosis), due to the glucose being generated from gluconeogenesis.
my understanding of the atkins diet is that for most people it typically has more fat and less protein than a typical bodybuilders CDK diet, so it ketosis would definitely be going on with atkins.
and as far as protein making you feel full......BULLSHIT. ask anyone what macro is the most filling and they're gonna say carbs (there are physiological reasons for this also). try eating a protein only meal and staying full for an extended time period.
i'd have to say that program was pure bullshit.