I'm trying to set the remember passwords option on but every time I restart Firefox for U3 it's back unset again.
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Be sure to let Firefox for U3 fully close. If you click eject on the U3 Launchpad before it does, it may lose some settings.
It may take up to 30 seconds to fully close after you close the window.
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No the tick is still cleared even after allowing several minutes after shut down before removing the flash drive.
Bizarely it *is* prompting me if I want to save the password (like when logging in here) even though the remember password box is not ticked.
(It's happening with Portable Firefox as well as Firefox for U3.)
Any chance you're using the same profile for both? Or running from the same drive? It sounds like a profile or drive issue. I can't reproduce the behavior with Portable Firefox or Firefox for U3... and both are set to save passwords by default.
Sometimes, the impossible can become possible, if you're awesome!