I am having a VERY similar problem (on WP 2.6, but I did have the issue with 2.7). I am using IIS7 (because I want both PHP and ASP.NET) with Godaddy. The changes are not save, but this only happens with certain plugins.. and then some plugins save the changes fine… additionally, I cannot change the header theme image. I don;t mind cause I worked my way around it, but when I try to upload an image, and when I click the button to save it, it brings me back to the “General Settings”… anytime I am at Gerenal Settings after attempting to save changes from a lugin or something, I know it didn’t work ??
Anyone have any ideas???