Ok I have officially tried setting a path for content to be saved to the SD card based on what I described above. Nothing has changed.
I click on a video on the internet, it pops up 'choose an action' and I select 'downloads' and sure enough the clip downloads, but to the device storage. I want it to download to the SD card directly.
WTF. Pretty sure every other phone I've used (including GS3) would download content straight to the SD card. SD card is in good condition. Was formatted. Has plenty of room left (14GBs). So what is the hold up?
Anybody else experiencing this?