Background Information
You are certain that you are connected to Project Server however when you choose File > Save or the Save icon from the menu, the system opens the Save As dialog to save the project as a file rather than diplaying the Save to Project Server dialog. You have verified that the user is configured with the correct save permissions in Project Server.
Resolution
This behavior can occur if the Project client is configured to save project files in the 2000-2003 file format. To correct this behavior, navigate to Tools > Options and select the Save Tab. In the Save Microsoft Office Project files as picklist at the top of the dialog, select the Project (*.mpp) format.