Hi,
I'm using gravityforms v1.7.3 and have reproduced the issue on a clean wordpress install. To see what is wrong simply create a form, add the function below to the default theme functions file, update the form title through the UI and you'll see that the var dump is the old title. Please help.
function my_save_form($form) {
var_dump($form['title']);
}
add_action( 'gform_after_save_form', 'my_save_form');