Ok so I was still having an issue and getting downright aggravated.

So I called Customer Support and found out that the "official" Kindle covers (leather with the prongs and elastic band) are causing problems. I had been using that cover, and now that I have discontinued using it - NO problems at all! CS was very helpful and even issued me a refund for MORE than I paid for the cover so that I could get the lighted cover, which is supposed to correct the problem. I am more than happy with this fix!

Will report back with how the new cover works.