OS 10.3.9 Network Settings Won't Apply

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My ethernet cable is hooked up to a 2wire home portal/home network/DSL and works fine with 10.2.8 on first hard drive.

When I try to setup 10.3.9 (on second HD) in System Prefs/Network and press "Apply Now" button nothing happens and settings are not saved when I quit System Prefs. Each time I open System Prefs/Network I have to start from scratch, setting up a new location, etc.

Any ideas?
 
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