@BlaneR,
you can run water while it's regenerating, but if it's on "bypass mode" you're running hard water into your house. I think that if you hit it just right,you may also pull brine into the lines. My advice is not run water when it is regenerating, that's why they set it to go off in the middle of the night, usually. A dual tank/one head system , will allow water to be run all the time, at twice the cost.