This was sometimes the case on the iPhone 2.0 OS, but since updating to iPhone 3.0 OS, it has gotten worse.
There are plenty of times where I am listening to an album, and press the button to go 'back' and it will show a screen that is not the way I navigated to get to the song/album that I am currently listening to. Also, at seemingly random times it will forget what I was listening to a while ago. Ex.(This has only been the case since getting iPhone 3.0 OS) - I get in my car, hook up the iPod to my FM Transmitter(from Monster) and use the double click of the home button to continue playing whatever album was previously playing, but it just starts playing a random song.
Anyone else having these problems?
Powerbook G4, Mac OS X (10.5.7), 1st Gen iPod Touch - iPhone 3.0 OS