iPod touch clock - timer

[net26]

i can't seem to get the clock to accept the "sleep ipod" option on the timer in clock. whenever i set "sleep ipod", the timer starts counting down, but when i re-enter the clock, the when-finished action is changed to that "Time passing" sound... really frustrating, especially if repeat is on, i wake up to an empty ipod every morning and have to get out of bed to check my email and read the news :D

anyone else notice this?