403 on Item Edit and Unable to Open in Parent

I have 2 things...

First when adding a menu item to have users add a K2 item in the front-end I keep getting 403 Not Authorized Error. I have checked all permissions and settings and it is enabled to allow front-end editing and me as a Super User still get this error.

Second, in the menu item setting I change it to open target in Parent window but it keeps defaulting back to "New with Navigation" every time I save!