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It's under:
Settings->Applications->Developer
"stay awake"
it's supposed to just work. that is, without tinkering with settings the screen is supposed to stay on while the droid in plugged in in the car, but not when plugged in at home.
That's exactly how mine works.
Seems like a mixed bag of results tough.
Thanks guys. That setting works and I can just put the screen to sleep manually when charging at home.
Also, I know it was charging in the car. The battery icon in the top right corner had a lightning bolt in it.