After updating my Touch to the new 1.1.4, the album view will reset to the top of the list when moving in and out of the list to view other items. That view use to stay where you last were when you moved to other pages, now it won't on mine. This problem has cropped up in different update versions. Some fixed them while others brought it back.
On my ipod touch, if I pick an album to view its contents and then go back to the album list, the list won't reset. If I pick another view such as artists or genres, then when I pick the album view again, it resets to the top of the list. I have version 1.1.4
I did a hard shut down and that seems to have fixed the problem. It will now do as you described. Before, it would reset to the top anytime I left that particular view. I wonder why this problem still crops up? I hope they can fix it once and for all.