Unable to modify fail-safe operator in SQL Server 2005

I am trying to change the fail-safe operator in SSMS from one operator to another operator. It allows me to make the changes, but after selecting ok and going back into the SQL Server Agent Properties it still shows up as the old operator. This behavior prevents me from removing the old operator.

There are few step that you can take

I) Disable Opeartor a/c

II)
1) Right-click "SQL Server Agent" and select "Properties"
2) On the left select "Alert System"
3) When the Alert System page comes up check "Enable fail-safe operator"
4) Make sure you choose "NewOperator" from the "OldOperator" drop down box
5) Click "Ok"

OR

Create two operators in SQL Server Management Studio
1) In SSMS expand -> SQL Server Agent
2) Right-click "Operators" and select "New Operator..."
3) In the "Name:" text box enter "Operator1"
4) Click "OK"
Repeat Steps 1-4 and create another operator names "Operator2"

Set original fail-safe operator
1) Right-click "SQL Server Agent" and select "Properties"
2) On the left select "Alert System"
3) When the Alert System page comes up check "Enable fail-safe operator"
4) Make sure you choose "Operator1" from the "Operator:" drop down box
5) Click "Ok"

Verify fail-safe operator
1) Right-click "SQL Server Agent" and select "Properties"
2) On the left select "Alert System"
3) Verify that the "Operator:" drop down box says "Operator1"

Change fail-safe operator
1) Right-click "SQL Server Agent" and select "Properties"
2) On the left select "Alert System"
3) Select "Operator2" from the "Operator:" drop down box
4) Click "Ok"

Check fail-safe operator
1) Right-click "SQL Server Agent" and select "Properties"
2) On the left select "Alert System"
3) Notice that the "Operator:" drop down box still says "Operator1"