trouble with "Save As"

I have implemented the Save As feature in ML. Frequently when I use Save As and spotlight to find the right folder, it is grayed out and I cannot save the file into it. The Save button is also grayed out.

Let me illustrate. Let's say I have a folder called Transportation. Inside that folder😟 are subfolders Horse & Buggy, Ships, Trains, and Autos.

I have a new file to save under Autos. I use spotight to find the Transportation folder. Inside all the folders are grayed out and the save button is gray.

The only way to get to the Auto folder is to start at the top and burrow my way down to the Autos folder.

Something is wrong here.