MS Office Picture Manager In VISTA won't save, and deletes..

Hello,
I'm trying to resize some jpegs through MS Office Picture Manager and am
having trouble.
After I make the changes and click save I get the error "Some files could
not be saved. Try to save the files again." with the option to "Cancel Save"

I try to save it again and it still doesn't work. I reverse my changes and
try to save the file again and it still won't save, then I close MS Picture
Manager and my original file has been deleted. Simply vanishes, it's not in
the recycle bin either.

Does anyone know how to fix this? I've tried using the "Detect and Repair"
tool in the Help menu, as well as reinstalling it through the Programs
section in the Control Panel.

I was able to do this just fine in XP. Have my VISTA fears finally been
justified?