I've been reading Microsoft's Prism Documentation and it has a lengthy discussion of the MVVM framework. Both the section discussing the Model and the one discussing the ViewModel talk about the View binding to the properties declared in each. Is this correct? Everything I read up until this made it seem like the ViewModel was the intended binding source, and the Model was more of the business logic. Any clarification would be appreciated.
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Almost all of the time you will be binding to ViewModels, which will wrap Models and add convenience functionality that has to do with your UI (and which would hardly belong to the Models directly). Sometimes not much convenience is required and you might end up binding to Models directly (although personally I choose to never do this).
The documentation is indeed a bit unclear on this as you mention, but in a nutshell your grasp of the situation is spot on.

Jon
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Thank you. Yes I kept reading and it did become a little bit more apparent that ViewModels add necessary properties and what not for the View to utilize. I like the idea of avoiding ever straight binding to the Model. Keeping things uniform does wonders for readability. – Ethan Aug 02 '12 at 22:50