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It only adjusts the brightness when you "slide to unlock." Once you've done that, and start using the phone, the sensor turns off (no longer adjusts the brightness).

Try to slide to unlock your phone under a bright light. Hit the sleep/wake button to lock it. Then put your finger over the sensor and slide to unlock again, you should be able to notice a dim.

I don't think your screen protector would make a difference.
Edit: You might be right.
 
Brightness

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More than bright enough indoors, still bright enough to use in direct sunlight, and low enough to conserve battery power. What's not to like? :)
 

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About 65%. it annoys me when it's lower than that. Also if I'm outside then having it lower can be tough to read in sunlight.
 
I keep mine around 50% and just recently have taken the auto-enable off. I don't like that it gets soo dark, when in my bedroom at night. Even though the lights are off, it still becomes irritating to read a screen that is so dim.
 
There are issues of screen quality here and the whole 'yellow piss screen' issue.

My 3gs with a yellow tint has to be 75%
my 3G was comparable with a more blue tone at 50%
 
More than bright enough indoors, still bright enough to use in direct sunlight, and low enough to conserve battery power.
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That's how I keep mine. I don't know how the people who turn theirs up to 50% can even look at the phone at night without damaging their eyes. :cool: 50% is way too bright at night, plus everyone in the movie theater stares at you when it's up to 50%. I only turn mine up to 50% if I know I am going to be outside in direct sunlight.
To the original poster: I noticed a significant difference in battery life.
 
Default with auto brightness off.

I used to do the 25% with no auto brightness but after doing a restore this weekend I find the default settings you mentioned much better and easier to see. Battery be darned, I'm never away from a charger and I'm not certain it saves all that much life over the course of a day
 
I am at 100% all the time, I dont know how people can use it at anything less than that, it makes the screen so drab. I get a full day of battery life too and that all the matters.
 
I think the auto brightness is broken. When you're in direct sunlight the screen should become brighter, not the other way around.
 
I keep mine at 30% with auto brightness on. Always kept this setting in all iphones & I am pretty happy with it :apple:
 
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