When I change the settings in the nosshell.exe setup then start the game, the settings take effect and everything is fine. The problem is, after exiting the game and upon playing it next time, none of the nosshell.exe settings are saved. If I launch nosshell.exe I can see that everything is once again set to the default settings.

I can simply change my settings to the way I like them and they will work on my next go of the game, but as they are not permanently saving, it's a bit of a pain to have to set the thing up every time I want to play. Is this normal, or should it not be like this? Does anyone know of a fix please?

There is a partial fix for this. I jus installed the game and I'm having issues myself running the game. Acording to this [url=http://pcgamingwiki.com/wiki/Nosferatu:_The_Wrath_of_Malachi]site[/url] you have to create a txt file name it nosferatu.reg and put these lines into it:
Windows Registry Editor Version 5.00

[HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Idol FX]

[HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Idol FX\Nosferatu]

"Adapter"="0"

"TextureQuality"="32"

"TextureFiltering"="2"

"AntiAlias"="4"

"LevelGeometry"="2"

"LevelTextures"="2"

"ParticleDetail"="2"

"SoundEnabled"="1"

"Width"="1280"

"Height"="960"

"Depth"="32"
Then save it and run from the game's directory. After this the nosshell.exe will save the settings but the game will keep reseting to default settings(for me it's doing that). mWhat I do Is, always run from nosshell.exe so that the game will always run with the saved settings. ATM I can't access the widescreen fix which would be ideal for running the game on my resolution(1920x1080), so I just play it like that.