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Its a bug in IE so when the internet cache becomes full it will only save things as .bmp

http://support.microsoft.com/default...;EN-US;q260650

Quote:

SYMPTOMS
When you click the Save Picture As button for a graphics file in Microsoft Internet Explorer, you may be able to save the file only as a .bmp file even if the file is in another format (such as GIF or JPEG). The file name may also appear as "Untitled."
CAUSE
This issue may occur if either of the following conditions is true:• This issue may occur if your Temporary Internet pages cache is full.
• This issue can occur if you have "Do not save encrypted pages to disk" selected in Tools, Options, Advanced Tab and are loading the page over a secure connection (https).
For additional information about another cause for this issue, click the following article number to view the article in the Microsoft Knowledge Base:
250747 Right-clicking, selecting "Save picture as" does not save image with correct extension
WORKAROUND
Depending on the specific cause for your issue, use one of the following methods to work around this issue.
Method 1
Delete the temporary Internet files. To do so, click Tools, click Options, click the General tab, and then click the Delete Files button.

Note To locate the Temporary Internet Files folder, click Options on the Tools menu, click the General tab, and then click Settings. The current location appears in the Settings dialog box.
Method 2
To work around the problem, click Tools, click Options, click the Advanced tab, clear the Do not save encrypted pages to disk check box, click View, and then click the Refresh button.