In outlook 2007 attachments do not Save As with file extensions,The "Save As Type" drop down only lists "All Files (*.*)" and does not offer a file type
It has Windows 7 Pro and Office 2007 installed in system.
There is another thread with the same issue as you as following. User completely uninstalled the program and reinstalled it with the last service pack to fix it.
In addtion, we may also make a try before completely uninstalling.
1. launch Outlook in safe mode to determine if it could be 3rd-party add-in related.
2. Create a new profile.
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