Saving a document in SharePoint 2010 document library

When we create a new document (lets say Word Document) in Sharepoint 2010 document library, while saving the document the following dialog appears.

This means that the document is going to be saved on your local hard drive and not on the SharePoint site. To resolve this one needs to do the following steps -

Open Microsoft Word, click on File -> Options

•  Click on Trust Center in the dialog that opens

• Next Click on Trust Center Settings

• In Trust Center Settings  click Protected View tab and uncheck Enable Protected view for files located in potentially unsafe locations as shown below.

• Click on OK to close the open dialogs and close Microsoft Word.

Now if you try to create a new word document in SharePoint and try to save it, you should get the following dialog

Which means that now your files will be successfully stored in the Sharepoint document library and not on your local hard drive.

Two important notes-

1.  One has to repeat this step for Excel, PowerPoint, etc (which means each kind of document you intend to store on Sharepoint)
2. Also if you are using Windows Server then you need to enable Desktop Experience feature in Server Manager

Hope this helps