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IE6 security setting changes don't stick

When I try to make a change to my IE6 security settings, the changes don't stick. Under the Internet zone & Custom Level when I change the level to anything it always defaults back to Medium. (I make the change, click Reset, OK.)  I am running XP Pro with all the latest MS patches and updates. It is a stand-alone machine though I occasionally VPN to my office network where there are a lot of Group Policy enforced settings. Thanks in advance!
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Thank you for the in-depth reply. I've just completed steps 1 - 4 without a fix, though. I had previously used Control Panel to remove, reboot and then reinstall IE6. After the reinstall it still had all my prior settings (ie: home page) so I don't think that uninstall method worked. I'll check out the uninstall methods in your step 5 now.
I tried the IEFix utility and the utility did actually set IE6 back to a default condition. I was a bit incredulous that the setting indicator remained at Medium. However, after having gone through the above steps and perhaps paying more attention to what was happening in the actual settings window, I see that the changes to the individual settings are actually being made and they do stick. The Medium setting display is not actually what the settings are. So, I'm satisfied with the solution provided and no longer feel like I'm losing my mind. Thanks for the help!