I am working on a function that saves the image with normal download function.. It's on my todolist for the coming days.
I have this problem as well, as do friends of mine. I think it is a problem with IE/windows, or some random little detail that has been overlooked. My solution is to select "email this picture" or whatever after right clicking an image, then double click the attached image from the email and select save as. It's longer, but it always saves them as jpegs instead of bitmaps.
It's a IE bug, So I am working on a special way to save those images. Sending a header to your browsers so your browser will handel it like a file download. This would save the image right.
Your temp. internet files folder is full. Go to the options in IE, click delete files. It still may not work after this (and this process takes some time), so you may manually have to go into the TEMP and Temp Internet Files folder and manually delete stuff. If it says a file is in use, don't worry about it not deleting. Delete everything else (cookie files may be mixed in either one of those folders; if they're in the cookies folder as well, then delete these extras). It should work then, might require a reboot. Another option, as you save the image, the filename is untitled and the type is bmp. Type in a name for the file and add .jpg to that name. Don't worry about the .bmp in the drop-down below. The picture will save as a JPG. Figures Microsoft is taking way too long to fix this...
Thanks guys i'll try these and see what happens. It's wierd my computer was working fine and then all of a sudden it just stopped allowing me to do this.
Cheers