After several tests and several days of waiting, here is what is working (Contour 2) and what I think is NOT working:
1. If you select a program, then All episodes, and then select number to Keep, it works fine.
2. If however, you select a program, and let the default "Keep all episodes" selection, then recordings start recording each day or multiple times per day. However, when you try to later limit the program Keep option to say 10 episodes, it doesn't work.
Over a week ago, "The Big Bang Theory" had recorded 26 shows. I went into series options, and changed the selection for the series Options/All episodes, to 25. save etc.
As of today, there are 40 programs saved.
Conclusion: Contour 2 software bug -- changing number of episodes to keep can ONLY be set when setting series recording is added. If this isn't true, then please provide some detailed instructions on how to modify series options afterwards.