Ok, so you have your homepage set to igoogle, and you have your history set to never remember history? Then you close Firefox, and igoogle is still your homepage, just not logged in, and your settings are to "use custom settings" instead of never remember?

Have you tried to Reset Firefox? Refresh Firefox - reset add-ons and settings right now that's all I can think of unless you give me more details.

Weird. Can you see if there's files with the names prefs-1.js, prefs-2.js, prefs-3.js, etc in your profile folder? Or a file called Invalidprefs.js. If you find those files, delete them to the Recycle Bin.

But keep the highest numbered prefs-number.js file. Example: Keep prefs-10.js, delete prefs-9.js. That one should have all your latest settings. Also delete the original prefs.js file to the Recycle bin. It might be corrupted.

And on some Windows PCs, the last part of the filename might be hidden. Example: prefs-9.js will look like prefs-9 or user.js will look like user. These are the same files you're looking for but Windows is hiding the .js part.

Also to make sure you are in the right profile folder, read:
How do I find my profile?

I've tried Reset FireFox, no success. I've also observed my privacy settings remaining the same (Never Remember History) which is what I want, but I don't remained signed in on my igoogle page.

If you have Firefox set to Never Remember History it will not save your password for iGoogle (it's just like using Private Browsing, Private Browsing - Use Firefox without saving history). So in this case Firefox isn't doing anything wrong. Do you not want to save history? In that case you'll need to either adjust your settings to just delete the cache and pages history, or just log back into iGoogle everytime.

When uncheck Cookies and Active Log ins so they are not deleted when I close firefox, that seemed to resolve the problem. Thanks for all your help.