I have the same problem described in the first comment. I have
Ubuntu 8.04 installed from zero, and upgraded firefox to 3.0.2 and the
problem started. The problem does not solved when upgrading to firefox
3.0.4. I tried running firefox using sudo (sudo firefox), but this does
not solve the problem, then it is not a rights problem.

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Firefox 3 cannot save files or access file system
https://bugs.launchpad.net/bugs/251687
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