Jim Miller (Qual Sec, Cram Off, etc) used to tell a story of walking down the street one day in 1976, and running into LRH. Everyone always humored him about this story, and eventually he stopped telling it.
Well, it was probably true. LRH WAS living in a brownstone on Q street at that time. From
http://www.xenu.net/archive/books/bfm/bfm20.htm
"Next morning, Kima drove downtown to look for more permanent accommodation. She found a comfortable brownstone on Q Street in Georgetown, only nine or ten blocks from the Washington org, and signed a $1300-a-month rental agreement.
Within a few days of moving into the brownstone, Hubbard had recovered his composure. Telex communications were set up and the usual retinue of messengers and aides moved in, including Jim Dincalci, who drove up from Florida towing a U-Haul trailer loaded with the Commodore's personal possessions and private papers. Daily reports began arriving from Mary Sue, many of them detailing the activities of Operation Snow White. 'It was strange to think', said Kima, 'that while we were lying low in Washington, other Scientologists were going through the files in government buildings not far from where we were living.'
In the bustling streets of Georgetown, Hubbard felt safe to go out and about, although he grew a beard and took to wearing a curious assortment of old clothes in the fond belief that he would merge into the cosmopolitan atmosphere. 'He bought clothes from Salvation Army stores, real gungey stuff,' said Alan Vos, one of the aides who had moved into the Q Street brownstone. 'It was strange because on the ship he had had all these phobias about dust and smells and how his clothes had to be washed, but that all vanished when we were living together in Washington.
'He used to go out walking and sit in the sidewalk cafés on Connecticut Avenue. The Scientology office was just a couple of blocks away and he was often handed flyers by people recruiting for Scientology; he thought it was very funny. One day he got talking to a woman in a restaurant about Scientology and he suggested she should go round to the org on S Street. I heard later that when she got there they asked who had sent her and she pointed to LRH's picture on the wall and said, "That man over there." They went crazy and started an investigation on her, thinking she was some kind of government plant.
'It seemed to me that LRH was happy in Washington, happy to be getting out, mixing with other people, going to the movies. On the ship he had no idea what was happening in the world. He thought about moving his headquarters to Washington and looked at a property - there was a hotel for sale on Dupont Circle - but Mary Sue talked him out of it. She didn't like Washington and convinced him it was too dangerous. That's the kind of thing she used to do - play on his fears and psychoses about violence and police.'
Hubbard spent quite a bit of time researching in the library of Congress, reading up on black magic and the occult, and most days he took a walk in Rock Creek Park, where he believed that FBI agents were trained. He bought a trick camera with a lens that looked sideways and amused himself by taking pictures of trainee agents for future reference. Kima Douglas thought he was mad to take the risk. "