Yes, the demo should be able to save project files. (Note that this is not the same as “saving output” or rendering. To do that, click the red “save output” button.)
When you click the “save” button and the dialog opens, make sure that you’ve chosen a folder where you have write access (like “Documents” or “Desktop”), and type a short, simple filename for the project. See if that helps.
Also, make sure you’re not using an old version of the demo. If you recently (in the last month) downloaded it directly from our site, you should have the latest.
Alan.
http://www.wondertouch.com