By default, the HTML Editor will save files in the Working folder, which is located at C:\Program Files\CoffeeCup Software\Working. However, Vista may interfere with this process, creating a virtual folder and writing the files there.

To give the application full permission to write to the proper folder, make sure the HTML Editor is closed, and then right-click the HTML Editor desktop icon. Select Run as Administrator. This should properly launch HTML Editor for you. If it does, great! You can continue to launch the program in this way, or you can go a step further and configure the shortcut to always run as administrator. Here's how:

  1. Right-click the shortcut icon and select Properties.
  2. Click the Compatibility tab.
  3. Put a checkmark next to Run This Program as an Administrator.
  4. Put a checkmark next to Run This Program in Compatibility Mode For: and then select Windows XP Pro Service Pack 2.
  5. Click OK.

Now when you double-click the HTML Editor shortcut, it will run and save files normally. For more information about this issue and file virtualization, check out Scott Hanselman's Computer Zen.