I had the same problem (Right- Click, Save Picture As... would only offer
..BMP as choice) and I ran the Knowledge Base 810978 procedure as recommended
by John Inzer. Even though it seemed a little like trying to fix your
transmission by changing the radio station in your car, I proceeded down to
the Downloaded Program Files window, where I found two Java Runtime files
that were not listed as 'Unknown' or 'Damaged' as mentioned in 810978, but
showed 'None' in the Size details. These were probably placed by the Iomega
Help and Support site.
I deleted both these files (Gulp..), and was then greeted by the choice of
..jpg or .bmp when saving a picture. These Newgroups are a great source of
information, and I appreciate everyone taking the time to help us Newbies.