This somebody *HAS* read the manual and I still cannot get it to work! I have deleted all previous phones from the IS-350 and yes, the Auto Connect is on.
As for my $200 phone, it was the first thing I suspected so I tried it against a Bluetooth Headset and a friends Iphone. In both cases after registering the device it would auto connect after disconnect.
Thanks for the comments, I guess. I'll ask the service guys the next time I take it in for service.