I was afraid that this was just a problem with my comp. While I'm not sure what the issue is, a workaround is to start in safemode and apply your settings there. If you're trying to apply some higher graphical settings such as anti-aliasing x8, you'll need to flip the resolution of the game down to 800x600, apply the higher graphical setting, then revert your resolution. Then you should be able to apply them and restart the client without safe mode for full effect.
If you happen to get the 'cursor is corrupted' error, walk away for about 10 mins and wait for it to fix itself. Then you'll be good. Until they patch something and **** it up even more.