Is the iPhone 3G supposed to dim or shut of display when phone in use?

Hi,
I had heard that there was a sensor on the 3G that senses when the iPhone is up to your face when in use and will shut off the display to say the battery. Mine does not do this... is there somewhere I have to go to enable this feature... or is the 3G phone not supposed to do this?

The iPhone includes a proximity sensor for when on a call only. This is to prevent accidentally hitting a button on the screen when the iPhone is near your face during a call.
The iPhone includes an automatic lock setting to turn the screen off after a designate period of inactivity, but this setting has nothing to do with the proximity sensor used during a call.

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