Well, I've gotten as far as confirming that the Activity_Keypress event handler Sub in the Main module is indeed receiving the Back button press, and also the Volume Up and Down button presses, and that if you Return True to indicate that you've handled the button press, then the usual system response doesn't happen.
Perhaps add a Log(KeyCode) line to your Activity+Keypress event handler, make sure that you're actually getting the keystrokes so that you can redirect the Back button handling to StarDust's menu close routine.