The "Posts per page" setting located in the "SEO" tab seems to have a weird bug or something.
First, the "Posts per page" under the "Tags" group won't register my custom value. It will always go back to "blog default" after saving.
I noticed this since 3.2.0 btw, I wasn't able to report immediately.
Then, as I was trying to make it work, I just decided to scrap my setting. This is the second bug:
If tI "leave" the input box "empty" then save, the "Posts per page" field for the "Category" and! "Tags" groups will always revert back to my previous setting which was "50".
Yes, now the "Tags" group bug changed (see #1 above).
Also tried clearing my cache then restarting my browser... still the same. This is happening in a production installation. Haven't tested offline/localhost.
Fixed in CVS HEAD, v-2-4 and v-3-2. Thanks for the report! :)
//edit: Thread locked.