I'll select "Gesture Password", it'll present the Gesture Password 'setup' screen, and all will appear fine afterwards. It is only upon restarting (believe either turning on or off, or even 'hard resetting' (battery pull)) the phone does the application 'reset' itself. I know this has happened as I prefer to use the greyscale logo, rather than the default orange one, and upon the phone booting the phone up it'll be orange again, then opening the app up presents the afore described situation as described in my OP.
OS is 2.3.3.
I do not have any custom ROM installed on my Galaxy S.