Originally Posted by FrinkTL
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Are you sure you're not still within the time window set for the device to not require a password when it's been unlocked? I.e., in the Password applet (Lock icon under Settings) there is a dropdown next to the "Prompt if device unused for" checkbox. If the checkbox is selected, the device won't prompt for a password unless it has been unused for more than the time selected in the dropdown.
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This does not apply to a device that has been turn off, or soft reset, at least that is my experience on my 210. After a soft reset I am prompted for a password.