After I posted this problem I decide to download and apply Universal Theme Patcher and after that I was able to retain changes following the steps in my initial post.
However, thanks 3am for the quick response. I didn't have time to watch all of them yet but I definitely will when I get some more time.
... and thanks Panda X, I followed your advice and it worked as well!
Yay, now I can tweak up Windows 7 Basic theme some more. (Aero is crashing my system, I get a BSOD from my ATI/AMD card even though it is a new-ish notebook with a 1 gig 5730) I have been trying every fix I can get my hands on for the past month and nothing seems to stop the random crashing. I have installed and uninstalled so many video drivers, updates, cleaners and tried so many roll backs with Flash and other things, different antivirus, Java, etc, etc. Then I tried using Basic Theme and no more BSOD! However, no cool interface anymore either. oh well better than random BSODs!!
What the error message on the BSOD?