When I edit cards on my itouch are the changes saved to the original file that was uploaded on the website? Or are they only saved on the deck on the itouch?
They are only saved on the iTouch. There is currently no "sync" functionality; the website is only used to help transfer your flashcards. You should "Export" your flashcards occationally (e.g. email yourself from the app, or back through my server if you add pictures/sounds), so you have a backup in case they need to get restored.