outlook attachments do not Save As with file extensions

We have a new employee with a Windows 7 Pro laptop and Office 2007 installed.  

When he receives an email with an attachment, such as Word or Excel, and he goes to Save As, the file name shows up without a file extension.  The "Save As Type" drop down only lists "All Files (*.*)" and does not offer a file type, nor does it recognize that the attachment is a .xls.  So, if he saves the file as is, it saves without a file extension and therefore Windows does not know to associate Excel with the file.  He can manually type in .xls at the end and it will work but he shouldn't have to.

My setup is similar, windows 7Pro and Office 07, and I will attach a screenshot of how my email attachment's Save As screen looks.  As you can see, my configuration recognizes a Word document and give the file a file extension.  

Does anyone know how we can fix this? screenshot of my Save As box
Who is Participating?
JohnBusiness Consultant (Owner)Commented:
Do an Office Repair and then make sure Office is fully updated. If that does not work, consider uninstalling Office, restarting, and reinstalling Office (full not typical). Then make sure it is fully updated. ... Thinkpads_User
JohnBusiness Consultant (Owner)Commented:
Thank you, and I trust all is well now. I was pleased to help. ... Thinkpads_User
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