It sounds like you are filling the pipe with too much tobacco, and it could possibly be too wet. The tobacco should be a loosely folded and twisted if you decide to use that method. It does take some extra time to get the tobacco lit when you fold it but once it's going it shouldn't be going out every puff.
This is a good video for demonstrating the fold method
http://www.youtube.com/watch?v=s9tzmB0JInY
However it's your tobacco, so if you like what your doing stick with it