I got a reply from Kenwood support and the response was basically 'everything is fine, it should work just like the Keg, and you need to use PMM to set it up'.
I wrote back saying 'I know it should work that way, I'm writing because it DOES NOT.'
We'll see what I get back. It happened again today, I was randomly playing music and an artist came on that I wanted to hear the previous album, and I realized that the only way to get to that album was to do a complete new album search (waiting for it to scroll to M, then scrolling through 15 albums that start with M) or just hitting 'previous track' until I found the first track of the album I wanted. It took 26 presses to find the track I wanted. So stupid.
I got my new phatbox flashed, hacked and ready to install. It still burns me up though.