Ive seen iron seem to glow before, I think its just the texture packs being weird. But.. once 1.8 comes out with the new lighting I don't see this being an issue. Really hope they get it out this week.
Can't wait, the 1.8 new terrain generation features are gonna be my favorite part about the update. I also wonder how NPC villages will work in multiplayer? On pvp we could go raid all the NPC villages