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Are you working with a saved test character that you reload after each change in the editor? The "default starting hp" on a race is only set as the initial value when a race is first being added, so editor changes won't alter a saved character where the race has already been added. Once the race has been added, the GM is allowed to adjust the hp from there, so only the current value is stored in the saved portfolio, and that current value doesn't get changed, since HL doesn't know if the current value is based on the original default, or that the user has decided to change it.
They're referring to the configure hero settings (which you can re-open from the Character menu) - HP options section, "Max HP at New Levels".
For a race, the "default starting hp" that's set in the editor is the total rolled on the dice for the creature's HD, before constitution, and before any other hp bonuses.
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