malichaixx: If I have to get more basic than that, then we have a problem here :P
This forum is actually for the whole Might and Magic series, games 1-9, so it helps a lot to mention which game you're asking about. If the forum was MM1 only, then we could probably have figured it out from your first post, but since it's for all 9 games we did need a little more info.
Anyway, glad you were able to get the answer you were looking for. In general, in MM1, everything resets whenever you leave an area. The only thing that's saved when you save your game are your character stats, items, and active quest, if any (by active quest I mean the type of quest that can be removed by casting the "remove quest" spell). Other kinds of quests are only tracked by items; for example, if you have a quest to deliver something, then the game remembers this because your party is carrying that item. In practice this means that many quests can be repeated, and usually partial progress is not saved.
Actually, now that I wrote that I realize that there are a few exceptions to this, usually for tasks that require visiting multiple areas. But most of the time it's true.