Quite a few users have been reporting that DoggCatcher is unable to resume audio to the correct position after switching media files or exiting the application. This problem occurs for HTC Incredible users that have received the android 2.2 update.
This seems to be a bug in the Incredible froyo ROM that causes the media player to ignore seeking (moving the audio position) in certain circumstances.
I've been working with a user and we've come up with something that seems to work around the problem. I'll post some more details once the testing gets a little further along.