yes, it was pretty closed but not totally. Actually, you could visit most communist countries as tourists, they wanted your money - I went to most of them and they were generally fascinating - very backward in some ways, few cars in the streets, spies everywhere (not that I would have noticed), zero obesity. Those I've been back to since (Prague, for instance) have changed a lot, but I'm told that Albania is still fairly poor and quiet. It'll certainly make a change after Corfu.
And yes, Enver Hoxha thought the dictators of Russia and China were a bunch of softies. The country basically had no allies at all.
Enjoy yourself!