So far the saving feature does work but it only saves the player. It doesn't save npcs, items on the ground, ect. So if you kill a monster, it drops an item, you quit the app, reopen to the game you will find the object gone and the monster back alive. I can make it save everything else but that's going to take a bit more work.
I think I'll hold off on making it save everything until I get an answer to a question I posted on the iPhone development forum.
-Gandolf