Can't save .Gif or Jpeg files when right clicked.

This apparently happens when your IE Temporary Internet Files cache becomes stuffed. In IE, go to Tools >> Internet Options and on the "General" tab click the button marked "Delete Files" under the heading "Temporary Internet Files".

Another possibility:

If you are on AOL: under AOL settings, click on Internet Web Options. From there click on Browser Options. Lastly, Click on "Never compress graphics" .