That's the right place and the right box to have unchecked. And you said you have the Save Passwords checked on the Security tab.
Aw Gee Broni,
*tongue in cheek* Well you showed me yours first... so now I guess I'll have to show you mine . I'm not sure but I think they mean the same thing even though they look different.
In the Address bar, type about:config and click enter.
On the filter line, type signon.
Check the following preferences:
signon.SignonFileName3 status should be default and the value should be signons3.txt
signon.rememberSignons status should be default and the value should be True