Pen tool not closing path

[defaultr4734d2ub625]

Not sure if I have a rogue setting turned on but the Pen tool will not close paths, it just adds a second point on top of the one I am trying to close. It's very consistent, not an alignment issue. 

Also, for an open path, I cannot pick back up on a point to continue drawing the path. It starts a new path insted (asterick mode). Every time. 

Thanks if anyone has run into this issue.

[Kurt Gold]

Does turning off the "Disable Auto Add/Delete" option in the general application preferences help?