Mystery solved. There's no save, "but" you can automatically access the good levels & features by holding L1 + R2 + Start.
Awesome game by the way, supremely awesome. It's everything I wanted from ACE-R, but didn't get. I can't wait to see how the full game turns out. The controls feel so natural, I instinctively knew that the right stick was now for transforming. I just don't like that you can't set a custom control scheme in the demo (you can only switch between normal & real flight type). I'm sure that will be available in the final game, and the only reason I need it is because my standard scheme is to use circle for target, and R1 for secondary weapon. But like I said, it's no problem to switch while playing the demo. If anyone is wondering, L2 & R2 are for yaw, and you can control with both the cross pad or the left stick.
Graphically, I like the models way better than ACE-R. Lots of nice little details, including the little red/blue wing lights. It literally is MUF on PS3 with the graphics push we all wanted. So what I'm saying is, Graham, when this game comes out, you will need a PS3! I do wish they had at least stuck a VF-1 in here, but it'll be worth the wait....any word on how long that wait is again?