I've been doing a lot of searching through the forums to figure out how to:

1 - get my Backspace key to work in my ksh telnet session
2 - get the PWD to show up as the prompt

Solution to 1 - stty erase ^H
Solution to 2 - export PS1="$PWD>"

Or so I thought...type those commands on the command line only apply the settings for the current session, it seems. I've been reading about putting these lines in the .profile, but I don't know where that file is...how can I locate and edit it?

Also, #2 is kinda weird...once I tried it and it worked fine (for the current session), then I tried it again and it would display the PWD that I was in when I ran that command, even if I moved to another directory.

Any help appreciated.

.profile would be available in home directory

to retrieve your home directory get the entry from /etc/passwd file against your login id

then add the two solutions you had found out
run your .profile to effect for the current session by

. $HOME/.profile
or
. ~/.profile

for subsequent sessions it would be automatically effected

OK, in this statement from passwd:

user:pswd:000:00:DevLogin:/u01/app/stg:/usr/bin/ksh

the u01/app/stg is my home directory, correct? There is no .profile in that directory.

Then just make a .profile file.

Oh...duh. OK, I did that...

Now, the backspace key is working : )
But the prompt is still showing my home directory regardless of where I cd to...

Use single quotes:

export PS1='$PWD>'