Okay, this is weird.
iTunes 4.01, 30 gig library. Play some music from the main Library, and if you hit the forward button, it starts the track over. Can be an AAC, an MP3 or a protected AAC. doesn't matter. Rewind and forward behave exactly the same!
However, if you're in a playlist, forward behaves just like you'd expect, it hits the next song.
What daheck is going on here? My music is stuck in groundhog day!