Hello and D3100 Auto-ISO question

Hello everyone,
I'm a new D3100 owner. Coming over from a D70. I've used film SLR's for years before that. I wanted something newer and lighter. Something that I would be more likely to carry around. I need to rekindle my interest in photography, I've been getting lazy. I've had it a week and so far I'm liking it.
But.... I've got one point of confusion (so far). The Auto-ISO acts very unexpectedly when using the flash in dim light. It seems to favor a high ISO when it clearly has other options. I can turn the Auto-ISO off and get a good exposure under the same conditions at ISO 100 or 200. Is this a bug or am I misunderstanding how the feature works with flash? With no flash, it works as expected. I found a brief mention of this in a search here, but not much discussion. I did email Nikon last night and have not heard back yet. Thanks for any comments. -Nick

This issue has been brought up in reviews and other forums without much definative response from Nikon. I use program mode for indoor shots when the flash is required. You can turn off the auto ISO setting and set/save the ISO setting you would like. This "flaw" is a bit annoying and Nikon's responses to some have been essentially that it was meant to do that.

That is one flaw, and I can't remember if the firmware update corrected it. Have you done an update. 1.01 is out now. I do not like auto ISO anyways, and never use it. I prefer to leave it at 100 and adjust as conditions determine.

Hi nickt. I can't add anything to your question regarding the D3100 auto ISO, but I can welcome you to the Nikonites community. If you would please complete your profile with a little information about yourself, your camera, lens, and any other equipment you are using. That way we know more about who we are talking to and can give better responses to your posts and questions. The D3100 is a good camera and will produce great shots. Enjoy.

A response from Nikon as posted on dp review.

D3100 Auto ISO issues - Reply from Nikon: Nikon D90 - D40 / D7000 - D3000 Forum: Digital Photography Review

Thanks guys. Interesting response above from Nikon. I'm curious if I will receive the same. PavementPilot, I did take the update last night and no change. I'm trying to get very familiar with all the menus and buttons so in time it will not be a big deal to quickly changes settings as needed. I reset the shooting and setup menus often to force myself to get used to tweaking the settings. Thanks for the quick replies.