Posting maniac today.

When the watch loses power and then comes back online, I see that it has the app on there (with the time lost) for a second, but then it goes back to the "BlueTooth Pairing" screen.

Is that normal? I.e. if you go on a trip and don't have your computer and lose power you got a problem.

After powering the watch once its dead it should boot into the app. The time will get reset because there is no independent power source for the timer. It should only go into VLF if the user requests it by holding the button for 12 seconds or the app crashes 3 times.

Ahh, I wonder if the app is crashing since the time isn't set after losing power. I am using Hudson's multi-app framework as is.

I've used hudson's app framework before and it seems to work fine even after the battery dies. Try this with other apps and see if you get the same result.