Ya as much as I enjoy using my iPhone as an Apple TV remote, it's annoying if your phone goes to sleep. You have to wake it, put in a passcode and wait for your wifi to reconnect. Only about a 5 second process but when the phone is ringing you want the show paused right away.
On a side note, does 4.0 give you the option to turn off auto-sleep? I always had it set to never sleep, but I think the firmware I'm on removed that option and I'm hoping newer firmware updates brought it back.
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