First of all thank you for taking an interest in this problem.
Honestly, I'm not sure if it ever worked. I've used the function but I'm not sure if the last time I used it I was using Elements 8 or Elements 10. Sorry.
Yes, I have installed additional plug-ins and filters a few of which I found on the internet. Are there any that you know of that could cause Save for Web to stop? I'm guessing yes or you wouldn't have asked.
The file you asked about is there in the folder specified.
Chet (aka Clear Lake Sailor)
I don't know of any specific plugins or filters that affect the Save For Web plugin, but the first thing to do is get rid of all the stuff you've installed and see if SFW works. If it does, add the 3rd party things back one at a time until you find the culprit.
Another thing to do is make sure you're running a screen resolution of at least 768px vertical and are using the default, smaller, 100% screen font size in Windows.
In short, you want to get to a clean, standard environment for PSE.