I have used:
[UIApplication sharedApplication].idleTimerDisabled = YES;
in a number of Apps developed and running under iPhone OS 2.x and never had any problems with it. They were clock apps so needed to run constantly and ignore the iPhone's idle Timer setting.
However, trying to achieve the same with a new App running OS 3.0 (and which needs to be deployed under 3.0 as it uses some 3.0 APIs) I've found the idle Timer to be either ignored or inconsistent.
My App plays music from the iPod library and when the music is playing it auto-locks regardless of the above setting. But once you unlock it, it then doesn't auto-lock again unless you play music again, in which case it locks again after the iPhone auto-lock time setting.
I'm amazed no-one else has come across this as I imagine it would affect a large number of Apps.
Just to clarify:
1. The above code is in ApplicationDidFinishLaunching
2. I know that the phone won't auto-lock when testing from xCode regardless of settings
If anyone has any thoughts I'd be very grateful...