iPhone 3g issue

I'm still having two issues with my iPhone 3G (OS 3.0) and my MKi9100...  First when I dock the iphone it starts playing the first alphabetical song in my library - Is this normal or should it pick up from where I left off??  And I was very excited to see the disable screen saver feature in 1.20 - but my screen still goes to the flying bluetooth logo when playing music.  Does it make a difference if the iphone is "locked"??

Other than these two things I am very happy - this was the best iPhone accessory I've purchased!!