Site owner unable to save template

Hello,
I have a user that is in a site owner SP group with FULL CONTROL perms. As a member of this group he was able to, until recently, change then save sites as a template for later use. Now when he tries to save a site as a new template, it says access
is denied and gives the option to sign in under a different account.
I have removed then readded him to the group, but that did not solve the problem. In the same group I added my non-admin account and was able to save the template without fail.
One note to make is that the SP admin account wasn't delegated for directory replication perms from the A.D. (an oversight in the setup of the farm). Before granting that perm to the SP admin account, some users were displayed as "domain\jdoe"
and others with their display name "John Doe." There were also some cases where there were duplicate user profiles in SP. Since the replication perms were granted all names are displayed the same (as "John Doe") and the users that had duplication
profiles now have just the single SP profile.
My question is this; how do I go about allowing my site owner to save the new site templates? Or how would I troubleshoot the denial of his account perms when, according to the security group permissions check, he has the access required? Did the lack
of replication permissions for the SP admin account have anything to do with this?
If I missed something in describing my problem, please let me know.
Thank you!

@Jen:
- No, there is only the single account in UserInfo related to his login ID / Email
- There is only one column with a "1" (TRUE) setting and that is the tp_IsActive column. All others are NULL
- Created new web app with same site collection (Team Site) in the same environment. Added the same end user to the owner group. He was able to save a template without fail.
--Interesting development--
After saving a new template in the new web app, the end user tried saving the sub-site (in the original problem) as a template - and it worked! Tried the same action again and it failed with the same result as before (your account is denied...). Further
testing, trying to save a different sub-site as a template resulted in an error, but this time it gave a correlation ID to go from.
Time
Process
Thread
Category
EventID
Level
Message
02/22/2013 14:39:23
w3wp.exe (0x1CA0)
0x0D10
Monitoring
b4ly
High
Leaving Monitored Scope (EnsureListItemsData#12). Execution Time=254.561124388714
02/22/2013 14:39:23
w3wp.exe (0x1CA0)
0x0D10
0x0
iigj
High
Failed to compile XML.
02/22/2013 14:39:23
w3wp.exe (0x1CA0)
0x0D10
General
xxph
High
Failed to get the Fields schema with 0x80004005
02/22/2013 14:39:23
w3wp.exe (0x1CA0)
0x0D10
General
8kh7
High
Cannot complete this action. Please try again.
02/22/2013 14:39:23
w3wp.exe (0x1CA0)
0x0D10
General
ev0l
Monitorable
SPSolutionExporter: Microsoft.SharePoint.SPException: Cannot complete this action.
Please try again. ---> System.Runtime.InteropServices.COMException (0x80004005): Cannot complete this action.
Please try again.     at Microsoft.SharePoint.Library.SPRequestInternalClass.GetListItemDataWithCallback2(IListItemSqlClient pSqlClient, String bstrUrl, String bstrListName, String bstrViewName, String
bstrViewXml, SAFEARRAYFLAGS fSafeArrayFlags, ISP2DSafeArrayWriter pSACallback, ISPDataCallback pPagingCallback, ISPDataCallback pPagingPrevCallback, ISPDataCallback pFilterLinkCallback, ISPDataCallback pSchemaCallback, ISPDataCallback
pRowCountCallback, Boolean& pbMaximalView)
at Microsoft.SharePoint.Library.SPRequest.GetListItemDataWithCallback2(IListItemSqlClient pSqlClient, String bstrUrl, String bstrListName, String bstrViewName, String bstrViewXml, SAFEARRAYFLAGS fSafeArrayFlags, ISP2DSafeArrayWriter
pSACallback, ISPDataCallback pPagingCallback, ISPDataCallback pPagingPrevCallback, ISPDataCallback pFilterLinkCallback, ISPDataCallback pSchemaCallback, ISPDataCallback pRowCountCallback, Boolean& pbMaximalView)
--- End of inner exception stack trace ---
at Microsoft.SharePoint.SPGlobal.HandleComException(COMException comEx)
at Microsoft.SharePoint.Library.SPRequest.GetListItemDataWithCallback2(IListItemSqlClient pSqlClient, String bstrUrl, String bstrListName, String bstrViewName, String bstrViewXml, SAFEARRAYFLAGS fSafeArrayFlags, ISP2DSafeArrayWriter
pSACallback, ISPDataCallback pPagingCallback, ISPDataCallback pPagingPrevCallback, ISPDataCallback pFilterLinkCallback, ISPDataCallback pSchemaCallback, ISPDataCallback pRowCountCallback, Boolean& pbMaximalView)
at Microsoft.SharePoint.SPListItemCollection.EnsureListItemsData()
at Microsoft.SharePoint.SPListItemCollection.GetEnumerator()
at Microsoft.SharePoint.SPFolder.InitializeCorrespondingItems(String[] fields)
at Microsoft.SharePoint.SPFile.get_Item()
at Microsoft.SharePoint.SPSolutionExporter.GetFileInfo(SPFile file, String folderUrl, Boolean getFileListId)
at Microsoft.SharePoint.SPSolutionExporter.GetFilesInFolderTree(SPFolder folder, SortedList`2 filesInFolder, List`1 webViews)
at Microsoft.SharePoint.SPSolutionExporter.GetFilesInFolderTree(SPFolder folder, SortedList`2 filesInFolder, List`1 webViews)
at Microsoft.SharePoint.SPSolutionExporter.GetFilesInFolderTree(SPFolder folder, SortedList`2 filesInFolder, List`1 webViews)
at Microsoft.SharePoint.SPSolutionExporter.GetFilesInWeb(String workflowTemplateName)
at Microsoft.SharePoint.SPSolutionExporter.GenerateSolutionFiles()
at Microsoft.SharePoint.SPSolutionExporter.ExportWebAsSolution()
02/22/2013 14:39:23
w3wp.exe (0x1CA0)
0x0D10
Runtime
tkau
Unexpected
System.Runtime.InteropServices.COMException: Cannot complete this action.
Please try again.    at Microsoft.SharePoint.Library.SPRequestInternalClass.GetListItemDataWithCallback2(IListItemSqlClient pSqlClient, String bstrUrl, String bstrListName, String bstrViewName, String
bstrViewXml, SAFEARRAYFLAGS fSafeArrayFlags, ISP2DSafeArrayWriter pSACallback, ISPDataCallback pPagingCallback, ISPDataCallback pPagingPrevCallback, ISPDataCallback pFilterLinkCallback, ISPDataCallback pSchemaCallback, ISPDataCallback
pRowCountCallback, Boolean& pbMaximalView)
at Microsoft.SharePoint.Library.SPRequest.GetListItemDataWithCallback2(IListItemSqlClient pSqlClient, String bstrUrl, String bstrListName, String bstrViewName, String bstrViewXml, SAFEARRAYFLAGS fSafeArrayFlags, ISP2DSafeArrayWriter
pSACallback, ISPDataCallback pPagingCallback, ISPDataCallback pPagingPrevCallback, ISPDataCallback pFilterLinkCallback, ISPDataCallback pSchemaCallback, ISPDataCallback pRowCountCallback, Boolean& pbMaximalView)
02/22/2013 14:39:23
w3wp.exe (0x1CA0)
0x0D10
Monitoring
b4ly
High
Leaving Monitored Scope (Request (POST:https://<REMOVED_URL>). Execution Time=11517.2361291728

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