Doublecheck where it's trying to save the photo to. Vista gets a little weird about rights and folders, especially if UAC (user account control - Vista's idea of the "ultimate" security system)
Just for chucks, try and save the edited photo to someplace like the Users "My Documents" or desktop, where you should have full rights. If it saves there, see if you can change options to always store there.
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HOW EVER YOU CAN MAKE LABELS IN ANY WORD PROCESSOR:
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