I'll be getting mine in hand soon, and I can form a more properly informed opinion then. The partsforming I'm not crazy about, and reviews suggest a tight fit in the compartment anyway so that might be something I skip doing.
Yeah, there's a certain way to do it, and even doing it that way, it's pretty snug. I mostly just keep Eject in there, and peg Steeljaw and his backpack into holes on Blaster's back (they fit perfectly).
I do transform him to cassette mode, though, but aside from on-the-back-of-the-boombox storage and the fan mode I showed above, keeping the wings pegged in allows you to basically prop him up, instead of leaving him laying on his side all the time.
In fact, I almost never unplug it, except for the aforementioned alt Blaster storage solution.
I'll try to post more pictures later.