If you have CRON set to 1 but dont have a CRON job to end auctions, the scenario you describe would happen. To fix it, (set CRON to 0) OR (set it to 1 AND create the CRON job)
When it is set to 0 the auction end detector is run every time anyone visits your ecommerce site. So if no one visits for a while the auction termination is not detected.
There are also LOTS of reports of problems sending emails out. I dont have that problem so it is hard for me to troubleshoot.
On your other question, I need to look but I think you are correct. That items that have closed STILL appear in the list of items and require manual intervention..
Cheers!
AHB