Here are two procedures that may fix this problem.
To empty your Temporary Internet Files cache
1. In Internet Explorer, click Tools, and then click
Internet Options.
2. On the General tab, click Delete Files.
To turn off graphic compression in the AOL client
1. Go to Preferences in AOL.
2. Click Internet properties (or WWW in some versions).
3. Click Web Graphics.
4. Clear Never compress graphics (or Use compressed graphics
in some versions).
Clear your Temporary Internet Files, then try again. If that doesn't help:
Start/Run/Regedit
HKEY_CLASSES_ROOT\.jpg For Content Type, it should read
image/jpeg.
HKEY_CLASSES_ROOT\.jpeg For content Type, it should read:
image/jpeg.
HKEY_CLASSES_ROOT\.gif For Content Type is should read image/gif.
If it already says that, go to Start, Run and type in: regsvr32.exe /i
shdocvw.dll
Additional information:
http://support.microsoft.com/default.aspx?scid=kb;en-us;810978
Internet Explorer Saves Images As Bitmaps (.bmp Files)
http://support.microsoft.com/default.aspx?scid=kb;EN-US;250747
Right-Clicking, Selecting 'Save Picture As' Does Not Save Image with Correct
Extension
http://support.microsoft.com/default.aspx?scid=kb;EN-US;260650
Internet Explorer Does Not Save Graphics Files in the Proper Format
