If you are trying to save a site as a template in SharePoint 2007 you will find that the link Save site as template is only available under Look and Feel at the top level of the site collection. Doesn't really help if you want to save a sub site as a template.
If you would like to save a sub site as a template you need to append _layouts/savetmpl.aspx to your sub sites url.
If your subsite is:
http://www.sharepoint.dev/subsite/default.aspx
You need to go to:
http://www.sharepoint.dev/subsite/_layouts/savetmpl.aspx
And then you would be able to save the site as a template.