I can't offer any advice, but I'm getting the same
problem, and posted this Q on the 'general' newsgroup
section:
PROBLEM: when I attempt to save image files from the web
the file format is always .bmp - there is no option to
alter the 'save as type' format in the 'Save As' window.
Recently upgraded to XP, plus added Paintshop Pro 7 (also
running Explorer 6). Any suggestions???