I've noticed whenever I use Auto air conditioning on my '08 it goes into Recycle mode; if I want to use outside air, the Auto indicator turns off. I've tried leaving it in Auto for a long time and it stays in Recycle. Is this proper operation? Is it still maintaining the temperature that's set even when Auto is off? Thanks.

This is normal. It recycles usually when the outside temperature is higher than the set temperature. So if it is 25C outside and you set your AC to 24C, it will work in recycle mode. Once the desired temperature is reached it should switch to fresh air mode (Edit: unless outside temperature is very high). It is more efficient to operate this way. There are other factors that come into play as well such as humidity but I have found it has always switched to fresh air once the outside temp and inside temp match (or is outside temperature is lower).

MH