Photoshop Elements 8-Change of file format when saving deletes filename

I have been using Photoshop Elements 8 since last May and have always been irritated that when I add text to a photo it always defaults to PSD format for saving.  I have gone to the preference options to see if I can set jpg as the default and it does not offer that option.  This means that every time I save after adding text I have to manually select jpg to get the format to change.
Although this has been a pain, I have done it thousands of times as I have edited photos.
My problem is that suddenly from one day to the next when I change from PSD option to jpg the filename disappears and I have to go back and manually type in the whole filename.  The only changes to my computer settings that I can think of that might have affected this is that Microsoft Updates had 2 updates.  First was Definition for Windows Defender-KB915597 and the other was Unpdate for Windows 7 for x64 based systems-KB97690.
I saw a similar problem posted by sandwitch2 on Feb. 13th about PSE6.  99jon suggested the change to permissions of adding "everyone".  I tried this and it did not correct the problem.
Any other suggestions are welcome.
I have found Adobe's insistance on saving as PSD irritating to say the least in the past.  The inability to change this in preferences has made me very unhappy, but the quality of their product has outweighed the hoops they make me jump through until this.  Their search feature in support is pretty much worthless.  It either brings up nothing if you keyword is to limiting or brings up 200 responses if it if too broad.
I have been a user of Photoshop Elements for over 6 years updating as new editions have come out. I am to the point that if I can't get this current problem fixed I am uninstalling Elements 8 and going to another software.  Adobe's proprietary requirements and poor support page are just too much of a pain to deal with.

I was told that if I save in PSD if I send the photos to share with others only those with Photoshop Elements can open the files.  That is why I try to use jpg.  Is that true?
Thanks for all the help from both of you,
Bettye

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