I initially had the same problem, as did a friend of mine. My issue was that I installed the update over the original and it didnt like that. I uninstalled everything, installed the latest version, and the problem stopped.

My friend tried that and it did not work for him, but he discovered that if he switched from windows to full screen and back, that fixed it. There is obviously still a problem somewhere, hopefully CS will find and fix it.

And you are correct, the ACE is not retaining settings, and this is new after the update.