Hmm, that is strange (and frustrating). I would suggest the following.
When you try making a change, check the gm-templates.cgi. Look for the line that starts with "gmentrytemplate". Is you change reflected there?
Let me know the results. I tested doing a fresh install and an upgraded version. I was able to modify and save the "Index Entry Template: Standard Entries" field and see the changes reflected on the index page. Also, are you using GM 1.6.1 "fresh out of the box" or did you upgrade from a previous version?
Last Edit: Nov 22, 2006 23:16:30 GMT -5 by coldstone