Hi,
This "SAVING THE TEMPLATE SETTINGS" problem is usually fixed by using different browser. If you have tried already without any luck, then it must be because of "permission" problem.
When you click SAVE button, the template settings are saved in this file: /templates/flexible_lightmart/config (this is a file without any file-extension and include the template configuration in an Object)
If your server doesn't have the "write" permission on file within the server (some servers do that to increase the security), then this file can't be edited with the new settings. You can safely give CHMOD 777 permission to this file and try again.
Alternatively, you can SAVE the template settings on your localhost, create that file with the proper configurations, then manually upload (overwrite) it to live server.
Regards.