Did you create a Library from your user bank, then load the library you created into a library slot? Because if you had a live set in your user area when you created the Library - when you load the Library file, you would now have a read-only Live Set in your Library area.

Jason, I had the same problem but I just hit the performance button my selected sound in the live set, make the edits then while holding the save button hit enter. It should ask you if you want to overwrite performance. Hit yes. I save the edited sound to the performance list then while the sound is still active put it in the live set (hold save and click Live Set. You have to clear out a slot in a live set, hit the edit/done button until the empty slot has a plus. Then you can save your edited sound. You also have to hit the done button after you store the sound in live set. It seems to work for me. Much more complicated than previous keyboards where you edit sound then select a numbered location and hit enter/yes. Progress is not always better.

One major "complaint" I have against Yamaha's approach is the lack of elegance in the filesystem, handling of files/folders/etc. This includes live set among other things.