Will magnetic damage the Droid?

You may want to try Dock Blocker which can be downloaded from the App Market for free, I've been using it for a couple of weeks now and it solves the problem for me.
 
You may want to try Dock Blocker which can be downloaded from the App Market for free, I've been using it for a couple of weeks now and it solves the problem for me.

Nice find. Have you tested it by passing a magnet across the phone? Does the phone turn on at all when a magnet is passed over it, with this app installed?

I would love to know if this works!
 
I've tested it with the case my wife purchased for me, before installing the application (when trying to justify buying a new case or cutting the magnets out of this case) I could show off the docking mode simply by putting the flap (with magnet) on the back of the DROID, this would always pop me in Car or Media dock mode.

After installing the application, and testing it to verify it wasn't just wasting space I could not get the docking mode to work when passing or holding the magnet under the phone.

I think what the application does is simply blocks the API calls by the OS from calling the dock methods. This keeps the phone in sleep mode now in the case (as long as I remember to change my settings in Sleep Mode (app which will keep the phone from locking or the screen from dimming).
 
Well, awesome, Karnaak. This seems to be the answer to OP's question, and I'm glad to know this, because I want to buy a Droid Car dock, but don't want to use car mode.
 
Both the car-dock and the desktop-dock (a.k.a Multimedia Dock) have magnets that are designed to activate features on the phone. Hence the reason why the magnet in your pouch activates the phone.

Since it's a design feature that the various Droid docks use a magnet to activate features on the phone, I'd say it's a good bet a different magnet won't cause problems. Unless it's a REALLY strong magnet -- strong enough to erase the memory of the phone itself -- I think you're good.

I have been driving myself nuts trying to figure out why my screen kept turning on when i take it out of my pouch. Thank you for putting my mind at ease... Now if i could just figure out how i keep turning the flash on :-\
 
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my screen still turns off in dock mode.

Where is the option to keep it on? Or is there only the "Keep Screen on when Plugged in" option?
 
You need to have it plugged into a power source that provides enough power. When plugged into the computer, the droid does not get enough power (500mA) and cannot support charging and running the phone. Instead, use the wall adapter to provide the necessary power requirements for the phone.
 
My concern with magnetic closure holsters is possible damage to the magnetometers. You know, the ones that drive the compass functionality?

The dock magnets mesh with the back at a specific point. Random exposure to magnets right over where the magnetometers live (no, I don't know where that is) could conceivably magnetize some components in or around them, and cause a systematic inaccuracy of the orientation sensors.

I got the Verizon velcro case.
 
My concern with magnetic closure holsters is possible damage to the magnetometers. You know, the ones that drive the compass functionality?

The dock magnets mesh with the back at a specific point. Random exposure to magnets right over where the magnetometers live (no, I don't know where that is) could conceivably magnetize some components in or around them, and cause a systematic inaccuracy of the orientation sensors.

I got the Verizon velcro case.

In order to get magnetized, a piece of metal needs to have a magnet rubbed across the surface directly over and over in order to align the rods to have a polarity. Then after being bounced around without having a magnet attached, it will lose this polarity and go back to normal. It actually is pretty hard to magnetize just any piece of metal and keep it magnetized.
 
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