I am having the same issue. I've done all the updates, run repair on
Office.
If I insert SmartArt in any Office 2007 program, I cannot save the
file. The status bar says it is saving, but then it pops another save
as dialog box up. If I do nothing, it does nothing. If I hit save
again at this point, I get the message There was an error saving the
file with the path to the document. I am only saving in docx format.
The interesting thing is, when it pops the second save as box, it
increments the file name (if it was Doc1.docx then when the second
Save as box pops up, it has Doc2.docx as file name.) Actually it does
save a file, but it is a blank file if it was a new one I created. If
I had opened a file, and done a Save as, it will save it as it was
originally.
I did try to see what would happen if I did try to save in the earlier
format. In that case, it brought up the compatibility dialog box. Then
behaved exactly the same as above.
This happens if I open a file that already has SmartArt in it and try
to resave, or if I create a new document and insert SmartArt.