The new version of Auto Respond has been published. I did not get the "Do Not Respond" text list working exactly as I wanted, so I left that out for now. I want it to be case insensitive, and it was not quite working when I tried that. The contact picker option IS included, and has been tested and verified working. Contact pictures may not show up correctly in the contact picker Do Not Respond list (last I checked on my Droid 2 they didn't work, but the same code worked fine on my Galaxy Nexus.)
I also fixed some other small issues in the new version, including a FC in Froyo, and an issue with the way ads displayed in the free version.
Check out the "What's New" tab when it is published for all the details: