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I spoke too soon. Tonight I had to switch to Firefox in order to add a new search to My Favorite Searches:
  1. Click the "Advanced Search" link in the yellow bar at the top of most pages.
  2. Fill in the search form (normal page), with "Save this search" pre-selected.
  3. Click the Search button at the top or bottom of the page.
  4. Fill in the "Save as Favorite Search" overlay window & click Save to save the search.
OmniWeb 5.6 SP5 does not display the overlay window (step 4).

[submitted as formal feedback]