Currently for radio buttons, it will use the value as a string. So, when you check the radio buttons your observable is getting set to the string "true" or "false".
If you were to do:
var viewModel = {
IsActive: ko.observable("false") //instead of ko.observable(false)
}
it would work or you could set IsActive after the fact like IsActive(IsActive().toString()). You could even create a dependentObservable that return the .toString of IsActive and bind your inputs to it.
Otherwise, if you use a single checkbox instead of radio button for both options it would work with the boolean.
Does one of these options work for you?