This problem started last week when I noticed my Droid was constantly cycling between launching the Multimedia station and Car Home apps. My phone is not in a dock nor near anything magnetic, just sitting on my wooden desk. This persists on and off throughout the week happening and at random times of the day. Generally always around 5-6 AM (which is crucial, because the Alarm won't work), around 10 AM, and near midnight. During the launching cycle the phone is pretty much unusable. I'm lucky if I can get back to the home screen.
Friday I restored the phone to factory settings and wiped everything. That seemed to fix the problem up till yesterday. The cycle started again around the same times previously mentioned. I did a clean install using a virgin 2.0.1 ROM and it fixed the problem for the day. I followed the guide here: Disable multimedia station/dock app? - Android Forums to rename the car dock and dock apks to baks and it has prevented the apps from launching.
Today I had no incident up till about an hour ago. My Droid will constantly wake up. I assume it thinks it's still in a Dock and trying to launch the applications but cannot.
What could be the issue? And if you think it's a hardware issue, do you think VZW will replace it? I pay the monthly insurance, but I bought the phone from someone else.