I just tried creating a simple two sentence .odt file and saving it in my 'pictures' folder. It saved and opened correctly. I'm using 12.10 gnome remix and L.O. 3.6.6.2.2 Build I.D. 360m1(build:2)). Just to check for config problems, could you create another user account and try to reproduce the misbehavior in that account? If you're trying to save to user created folders, I'd wonder about folder permissions.
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