For whatever reason, it appears that Tellico is unable to store configuration settings when running on Fedora 7. The tellicorc file is overwritten every time the application is run. Several users have reported the problem. However, I don't use Fedora and don't have access to a Fedora installation to figure out why Tellico is misbehaving.
I've been unable to find a bug report about any similar issue for other KDE apps. That suggests that the problem is due to something in the way that Tellico uses KConfig. But I can't figure out what in the world that might be.
This is just a post to raise awareness, in a sense, and perhaps someone will see it and have a suggestion. The only workaround was suggested by Vitor Pereira and involves explicitly setting the location of the tellicorc file.