It is supposed to work as you've described. In most cases, it actually does work like that. However, there is a long-standing nasty Android bug which causes the behaviour you've described. This happens when you launch the app for the first time from an IDE (like Eclipse) or by clicking the "open" button on the Installer screen. To see if this is what you're seeing, just do this:
- Go to Settings->Applications, choose your app and click "Force close"
- Launch your app, do something, press the HOME button
- Launch your app again.
You should return to where you left off. If not, something else bad is going on. If that is the case, please post your manifest in your question, because the problem is likely in these.
Don't try to use special launchMode
s to fix this. This just creates more problems.
See this answer for more information about the nasty long-standing Android bug.