No, you don't want to use a monitor profile as an editing space. Something weird is going on because you have it set correctly with the north american thing.
If ACR is kicking out a jpg in Adobe98, photoshop will 'preserve embedded profile' like it says, if you then open this file in a non color managed program (browser for instance) you will get the symptoms you describe. You'll need to change the file to srgb in ACR (easiest) (that little link on the bottom of the acr window?) or in photoshop (Edit>Convert to profile 'srgb', for every picture) to make it look right in a non color managed program. Srgb is the standard for the web.
I think that's right, been a while since I've used ACR...