Has anyone else had issues with saving the application launcher arrangement? I've gone through the steps of moving the launchers around and pressed "Done". The screen turns greyish as if it's saving and then returns to color with the original arrangement.

Any ideas?

Yeah, after trying to move a whole bunch to the top twice, pressing Done or the back-arrow button don't seem to save the setting properly. I upgrade OTA, so if you did as well, it may be like the Conversations bug where something gets broken and you have to remove some files in order for them to be recreated properly.