I presume that by Isolating Valves you mean motorised zone valves?
Is this a new system, or has it worked correctly before?
Assuming that it has been plumbed correctly:
a) the auto by-pass simply provides a short cut between flow and return, to allow water to flow when the pump is running but both zone valves are shut. Whether this is open or closed should not have any effect on the radiators getting hot
b) the *only* path to the radiators is via the CH zone valve - so the water must be flowing through this. Even if it doesn't appear to be *opening*, it pretty certainly isn't fully *closing* when it is supposed to. Are the pipes hot in the vicinity of this valve?
I suppose one other possible explanation - and it's a bit of a long shot - is that some sort of one-pipe gravity circulation is occurring through the return pipe. If this is the case, only one pipe of each radiator will be hot - and the other will be cold.