I know this isn't a big deal but apparently deleting all of your saves and then clearing the system cache before starting a new save will reset the save counter back to 000.
Is this suppose to happen or did i get bugged? I was proud of my 1600+ saves, lol.

I hope it does not indicate some kind of approaching problem with my Xbox memory...

I've had the same happen to me a couple of times on the PC. I wasn't concerned, and did it deliberately the last time.

Right on, it is suppose to happen then. I was concerned because i have deleted all my saves to start anew a few times and never had the save counter reset. Although, I never cleared the system cache afterwards until this morning. With all the bugs in Skyrim these days, everything seems to make me nervous..