Yes they do reset. If you want to keep your progress in an map, you can pause the game IN the area, or LEAVE the game in the area.
otherwise, if you stay in town, even the Portal will get deleted after some time and the instance resets.
Great thanks! Now im stuck at Count Geonor/Mad Wolf.. Im too weak. Died 3 times now.. :/ Its a hard game! I have 40% cold res atleast.