@Joe
Rarely is there just one sure fix for something, but here is what worked on my 
machine:

Close Firefox.
Navigate to home directory > View hidden items (Ctrl+H).
Open folder ".mozilla" > Open folder "firefox" > Open folder "xxxxxxxx.default".

Deleted folder "extensions", as others had mentioned some extensions were their 
problem.
Start Firefox >Create a bookmark > Restart Firefox.
Bookmark not saved > Close Firefox.

Delete folder "bookmarkbackups".
Start Firefox >Create a bookmark > Restart Firefox.
Bookmark saved.

-- 
Firefox 3 Beta 5 not saving normal or live bookmarks
https://bugs.launchpad.net/bugs/225257
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