If you can't save files a JPG's (only Bitmap), first try emptying your Temporary Internet Files
Tools / Internet Options / Delete Files button

If that doesn't work, try clicking in the Settings button / View Objects button
Remove any files that show as Damaged or Unknown

If your Internet Explorer no longer allows you to save graphics as JPGs

If no Internet application like IE, Outlook Express or other browsers are working,
it may be due to corrupted Winsock registry entries.

First find out if you can connect to the Internet. Just trying to use a web browser is not the best test.
Try pinging a site by both IP and Name

If pinging by IP works, then you have a connection to the Internet and the Winsock registry entries are probably ok.
If pinging by IP works but by Name doesn't, then likely you have DNS problem.

If you can't ping by either one, then you may have corrupted Winsock registry entires.

The basic steps are to: