The solution is to delete the .DS_Store file in the folder, then change the settings which will create a new, uncorrupted, .DS_Store.
I agree with you joe... it's likely a bad .DS_Store file. Only, in this case, i suspect it's the one in Preferences'
parent: i.e., /Users/gregg/
Library/.DS_Store
Many of the view options we tweak in a window actually get stored in the folder's
parent folder's .DS_Store. There is a cool little utility called fseventer which can show that action as it happens in real time. [i just checked again] Coincidentally, i also have my Prefs folder's icon view set to Kind... and it does stick (list view is set for date modified). As i play around with any of those settings, fseventer shows the ~/Library/.DS_Store getting written to.
EDIT: but perhaps taking out *both* .DS_Stores is a good cure, to be sure.
