Okay, I should probably read all the words before I post. It looks like you already knew there was another growth.
I have always un-potted orchids in this condition and placed them on top of large river rocks supported by flower spike stakes. I left some water at the bottom of a tall container (ones used for large Chinese takeout soups). I mist them everyday with Superthrive. This method has worked very well for me and I have nursed several Dens and Catts to health with my OICU (Orchid Intensive Care Unit).

Thanks to everyone for their responses!

For the cyc family, is it okay to mist occasionally, or should i leave completely dry until the roots have reached ~5 cm? The plant looks so sad sitting in a bone dry pot!

Misting is OK: you may want to check out this thread http://www.orchidboard.com/community...eries-aos.html - there is a link called "Culture influenced by Growth Cycle". The article tells you everything you need to know about Cycnoches and Catasetum culture.