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Hey there, You posted in the Adobe Business Catalyst forums so moved you to photoshop so the folk there can help you.
The original file must be Gif or you have some slices.
On the top of the Save for web dialog press the Two Up button and the orginal will be on the left and the version to save will be on the right.
Could you post a bigger screenshot as it's to tell from the small size you posted?
I guess your orginal is a png with no slices?
Even from the small screenshot your dialog doesn't look right. For example the view percent should be displayed on top instead of just x's.
What mac operating system?
Awwww that was the problem! I should've known the 2up wasnt selected. It was automatic in cs5.1 thanks for pointing it out. The original was a .tiff that I saved as a png. This may've started the problem. Thanks!