We have a cobalt raq3i that we are trying to modify into a raq4i. We downloaded the 4i iso from Sun and installed it to the server.

Everything there seemed to be fine, but after we enter the IP, Subnet, and Gateway and choose Save, it says "Verifying and Saving" but then goes back to the Primary IP Address screen.

Try rebooting the server as it should reboot the server after that information, or did you try reinstalling the software?

I've tried rebooting and even reinstalling the os but it still does the same thing.

We've got 512 MB of RAM but we haven't upgraded the processor. Would that prevent it from working?

The processor shouldn't be the issue, make sure that you have the correct ram, if you have the wrong ram type it would dump your information.

you might try a CMOS reset and an update to the bios too
that solves most ra4 o/s installation issues