I think this may NOT be the solution to your problem, but
I know when I started to not be able to save pictures as
jpg's, even though that is what they obviously were, it
was as simple as deleting the temporary internet files,
which should be done fairly often anyway. When the
temporary internet files folder gets to full, it seems the
only downloading choice given for pics is then as a
bitmap. What was especially annoying was that I couldn't
find out from Microsoft's help menus what I needed to do,
nor did I get any helpful responses on here. One was "save
as a bitmap, then open in Paint, and save as a jpg." Yeah,
yeah ... I know how to do that, but get real. Do that with
every pic? I'm ranting, but sometimes these help forums
are close to useless.
Hope you find the answer you need. If nothing else, go to
the tools dropdown menu on your IE window, and then
internet options, and clean out the temporary internet
files folder. So very basic, but I didn't know that when I
started to use XP. Now I delete those files regularly.
Let's see how long it takes for you to get a real answer,
and a useful one, out of this so-called forum.