I did list my OS on the first post: Mac 10.7.5, Nuendo 6.0.5. Its a mac pro Quad 2.8Ghz.
Yes, I did reset the permissions on the external drive- that houses my User account and all projects, I am the owner, in the admin group, and read and write for all, including public, and applied the permissions to all inclosed folders. I did it directly in the terminal, so not Batchmod, but that is just a graphic interface for the same commands. Also, the new user account that I made, on the System drive, is also not able to save settings. What I have done is to copy all my files to the one old account that is working, housed on the system drive, and I am using this instead.
Interesting: When I then copy this user folder to the external drive, and set this copied folder as the home folder for this same user account, then the problem comes back. It seems that I now can only see and save settings when my user folder is on the system drive, regardless of the permission settings of the external drive. Too bad.