Hi,
I have patched up the PS3 version to (1.2), shows as 1.1.1 in the game menu.
I can't say for certain what the patch has fixed, but from what I've gleaned it's supposed to fix the save issue mainly. try the following link forwarded by "Deep Silver", who arn't going to do their own forum by the way.
http://www.dead-island.com/
I've noticed an extra option in the multiplayer section to turn off notifications for matched players.
I've played with co-op mode for a few hours, restarted played for some more hours & it does apear to be saveing progress properly and I've kept new items found. It doesn't seem to have made things worse yet :P
I had been playing this in singleplayer only as I just kept randomly loosing progess with the multiplayer co-op turned on. I haven't had any corrupt saves though, just the not saving problem
Oh and I'm from the UK so most probably on the EU servers.
I hope this helps
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