Joe,

How are you editing the form?  In the solution explorer or in the InfoPath wizard and selecting edit?
It still isn't persisting after you edit the form, build/deploy the process? 

 Also, is there any reason why you're not using SP1?  I'd highly recommend upgrading.

Just above the design surface there is a link to an infoPath Form. I am editing the form by clicking this Icon. Its purple in colour. Its the wizard if I am not mistaken.

Try editing it (right click and select edit) in the Solution Explorer in Visual Studio and then re-deploying the process.  There was a bug pre-SP1, and I think it was that you couldn't edit it using hte Wizard (the purple icon in the top right).