This is related to questions about the following:
1. My theme settings are not saving or not reflecting on my site.
2. I cant update my theme
3. I cant upgrade my wordpress
This may be due to your WRITE rights on your WP-Content folder. This folder should have WRITE rights enabled. You can set these rights within your panel under Website Services ->Folder Security.
Drill down to the WP-Content folder and choose to add/remove permission. Find your website security name and click on it. Then choose Modify and under Inheritance choose both Files and Folders and choose Change.
This should be all you need to do.
You can read more about permissions at http://codex.wordpress.org/Changing_File_Permissions
