Hey mightymike,
This is what must have happened to your 1.05. After ActiveSync is setup, the End lock feature gets added with a new option "Teminate Data Connection" and it automatically sets itself to that purpose.
So, in this scenario, ActiveSync is configured, the end key for lock mechanism you have set gets overwritten by the end key for terminate data connection. I reset it to end key to lock mechanism. And it's working fine now.
I suggest you look to see if that's what happened to your 1.05, if not, I guess upgrade to 1.06 since it works for me *knock on wood*
In other news, just wait for
SensorLock, it's a killer screen lock application. I used it on the stock ROM, it worked flawlessly. But it's still in nascent stages with no configuration, etc. I'll be checking it out in a couple weeks. The 3 days I used it for, it worked amazing! I uninstalled it because since there's no configuration, it locks itself automatically on sleep even though I made sure to keep it unlocked.