mail photos won't save to iphoto

I thought I hated Lion until I "upgraded" to Mt. Lion! Now I have even more "issues". Current one is that when someone emails me a photo and I try to use the built in command to save to iPhoto, nothing happens. I have tried it over and over and it never goes to iPhoto - just no response at all. I am using Apple's Mail for my email - should be seamless, right?

Is there a fix for this? Are others experienceing this? This is a big inconvenience.

Thanks,

Marty