I don't know about your specific model, but many roll film cameras will not reset the exposure count until you open the film door (the back of the camera). That was pretty much universal among the 35mm SLRs and rangefinders I've owned over the years. The frame count is generally hooked up mechanically to the film advance mechanism, which is disengaged when the film is being rewound (the rewind button releases a toothed clutch on the take-up spool, disconnecting it from the film advance and shutter-cocking gear train).
The "S..." is probably indicating that the start of the film (the tongue) hasn't been moved yet. You normally have to advance two frames before you actually get to usable film (since the tongue protrudes and will be exposed when loading). Try "dry firing" the camera without any film loaded. You should see the frame counter advancing as you shoot (provided that you aren't pressing the rewind button at the time). If that's working properly, the problem is either with the way you've loaded the film or with that particular roll of film (a mechanical problem within the canister).