I have my phone set to use a pattern lock. When I put my phone into my car dock, it completely bypasses the pattern lock and allows full access to the phone. It didn't do that with Liberty (GB). :icon_eek:
I'll have to try that out to verify. I think it's a CM7 bug. I have mine just set to the slider, no password/pattern, and when I place it in the dock it bypasses that.
Are you using the stock google dock?
I use "car home" from the market and it might be the screen always on setting, because the phone will not lock when turning off the screen manually if the dock is open.