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I get to answer my own question. The app "Bookmark" does the trick nicely. It will play the audiobooks that are loaded into your iPod app. Has book marks, much better skip forward/backward features. Has a sleep timer which is nice, but I've got along fine with the built in timer app.
The back button goes back 30 seconds, not all the way to the beginning of the book.
About the only deficiencies I see is it has no double speed or half speed reading options. Not a big deal to me, but the lack is surprising in a dedicated audio book app.
Also, it's not free, it's $2.99 which seems pricey compared to what it does and what so many other apps do for the price.
Still, for me, it's worth it.
Lee
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