Error in saving project plan in project server 2007

I am getting following error when I try to make a change and saved the project plan. It has happened several times since yesterday. Not sure if the file is corrupted.
Is it possible to make a copy of the file and mark the current file as inactive?
The File cannot be opened.
Check that the File name and path are correct.
Check that the File format is recognized by Project.
Project Files saved in a version earlier than Microsoft Project 98
can't be opened.
If your File is From an earlier version, open it in that version, click
Save as (File menu), and save in MPX Format Open the MPX File. When
you use this method, project data is imported, but Formatting is lost.
Has any one has same issue? any suggestions please reply.
Thanks-

Hi Micahel,
Thanks for the posting!
what would be solution inorder to make it working.i was looking at some posts which i listed below for some it had worked....i did not try it but just guessing it would work
1. Launch Project Professional 2007 and connect to Project Server.
2. In the new blank project (Project1), click Insert - Project.
3. Select the troublesome project.
4. DESELECT the "Link to project" checkbox and then click the Insert
button.
5. When prompted to save the changes to the troublesome project, click the
No button
Or in another case it may be
Saving as a template with re-open is a smart work around, typically when a network connection gets dropped. In these cases
we have copy/pasted to a new file, or, saved as XML and then reopened.
I appreciate any kind of help on it.
Thanks
Tummala

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See the link below:
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Since morning we have been facing an issue with MS Project Professional 2010. When we try to open project plan, it takes time and then show nothing on the screen, project gets checked out to you as well but nothing comes on MS Project Professional Screen.
Strange thing, when busy mouse cursor gets released MS Project Professional show "Disconnected from the Server" message with white icon instead of globe one at the bottom of MS Project Professional and disappear after few seconds.
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Error in saving project plan in project server 2007

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