Remote for Universal Dock

I recently bought the apple universal dock, and I docked my ipod touch 2.2.1 (non-JB). I connected the dock to my tv using component wiring. I am now able to get video on my tv. everything worked great.

my only concern is that when I play a youtube video (or any video off the internet), the remote control will only adjust the volume. if I press pause/play, then it will immediately start playing one of my stored songs. additionally, the menu button is useless.

does anyone else have the apple universal dock, and have similar experiences?

thanks