I bought the Verizon (OEM) multimedia dock and was pretty excited to use my DROID as my alarm clock radio. I was soon disappointed by many factors ... all of which I worked through and found solutions for, so I thought I'd post what I did here. I quickly learned to dislike the stock interface for the dock. It is simply too bright even in dim mode (I hear this is fixed in 2.1), and those pesky LEDs remain ON while the DROID is charging. ARGH!
Once my phone was rooted, I simply removed (renamed) the stock dock app (Dock.apk), and now I'm a much happier man. I can reverse this if I want in seconds.
As for the LEDs, I take advantage of a bug that the DROID has, hopefully yours has it too.
In Settings, make sure Automatic Brightness is OFF, and turn the slider all the way DOWN.
Reboot the DROID. (Upon restarting, the backlighting for those soft buttons won't work until you adjust the screen brightness.)
I use a free app called "Sleep Timer" (please donate to the dev) to turn Pandora on, then back off in 60 mins. Love that app!
I then use an app called "Night Clock" (now called "Bedside"). I changed the clock color to be a very dark blue ... nice!
Now I can fall asleep with the time dimly displayed on the DROID while it is charging, and playing music. Nirvana! (Not the band ... the feeling. )
You can use the stock alarm, or the alarm that comes with Night Clock. I've settled on the stock alarm.
In the morning, I just use the power control widget to turn on the screen brightness and that reactivates the back-lighting for those pesky LED soft buttons.
Hope this helps.