I can't password protect my Playbook

Hey guys I posted over at Crackberry but couldn't find anything there, hoping somebody can help me here:
I noticed this with OS 2.0 that my playbook refuses to go in standby and password lock. This is whether I hit the power button to go in standby, or hit standby or the lock button through the software key. 
And when I hit lock, I can always swipe and wake the device. I have a password set and its also set for 10 minutes and it doesnt lock at all. 
I cannot make it lock right away, nor can I get it to lock after the set time of 10 minutes. 
This is really frustrating because I cannot have this darn thing wide open for anybody to pick up and look through. 
I don't know what problem this is. I have done a full security wipe two times now, reset the thing multiple times over (through the button holds or software button reset). And I have reinstalled the software. 
Do not understand what is going on. Anybody have a clue? I just want the darn thing to lock. And on the side matter, it looks like it is always on and not going on standby, so when I lock the screen and put it away, it will be super warm and the screen will be on when I pull it out its case (blackberry leather envelope)
SUPER FRUSTRATED!~!!!!! Ahhhh. Please help. Couldnt find anything from searching the forums.
Basically I have already done the hard and soft reboots on the playbook and I cannot password protect at all. It wakes up to the home screen regardless of how long of the time I set it to go password protect. And when I hit lock or the power button, it doesn't password protect and can wake up to the homescreen. 
I

Have you done a power off software reload?
if this dont work then you have a device issue most likely and need to contact RIM for support.
First I would like you to do a Back Up of your PlayBook using your computer and BlackBerry Desktop Software.
This can be downloaded for free from http://us.blackberry.com/apps-software/desktop/
After the Back Up is complete I need you to unplug your PlayBook and then push and hold down the Power Button until the unit Force Powers Off.
Now, while Desktop Software is still open on your computer and the PlayBook Powered Off, Connect the PlayBook to your computer.
You should see and error screen from Desktop Software pop up that has the options to Retry, Update, or Cancel.
QUICKLY choose the Update option.
This will erase all the information off of your PlayBook and Re-Write the Software back onto it. Once it's complete your PlayBook will need to go back through the setup wizard, and you can then perform a restore using Desktop Software to return your information. The only thing that won't come back after the restore are the apps that you downloaded from App World but they can be easily Re-Installed using the My World feature in App World.
Click here to Backup the data on your BlackBerry Device! It's important, and FREE!
Click "Accept as Solution" if your problem is solved. To give thanks, click thumbs up
Click to search the Knowledge Base at BTSC and click to Read The Fabulous Manuals
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