I am using Firefox, also have tried it on Chrome. Firebug revealed no errors. When I tried to toggle the box, there was an ajax query sent to /wp-admin/admin-ajax.php, which returned a value of -1.
I’m also having the same problem, however even with all plugins disabled, it still refuses to function as it should.
It’s maybe worth noting that it works on a 3.0 version of WP, but not 3.0.1
Hey, not sure if you’re still after a fix for this problem, but I fixed the same problem you encountered by removing the following line:
Options +FollowSymLinks
