cisco router loses configuration on reload even after saving it

Solution 1:

It sounds like you have a configuration register at the wrong setting. For instance, setting: confreg 0x2142 at an rommon will boot the router to a fresh/default mode. Trying entering config-register 0x2102 from an enable prompt to got back to booting from your configuration

Solution 2:

Rommon is probably set to ignore the startup-config.

Do a 'show version' and see if the configuration register is 0x2142. If it is you will have to change this to 0x2102.

Edit: Points to Andy he posted first.

Someone got half way through a password reset and gave up. http://www.cisco.com/en/US/products/hw/routers/ps274/products_password_recovery09186a0080094774.shtml