I mentioned the "not keeping my bookmark" problem to a coworker, who happens to have K2 with the latest firmware. I confirmed on mine, that my book has an "azw1" and "tan" extensions on the book files that weren't working properly (not saving place when powered off). My coworker has over 400 books and did a search for any book with those extensions. When she brought one up like this, it did the same thing (didn't save her place when powered off). I did the reverse test and bought another book. This one has the "azw" and "mbp" extensions....and works perfectly!
It is definately a "book" issue. What bothers me is that Amazon's support folks don't know this.
Again, many thanks to everyone for helping me work through this. Now, I'm off to my therapist...