Help! Downloading problems

Sometime since last week both Safari and Internet Explorer have quit downloading files (not pages) from the internet. I'm running Panther, am using Safari 1.1.1, and am using the Internet Explorer that came with this computer. I have checked permissions and restarted the computer and am still unable to download files. I can click and drag pictures from the programs.

Any suggestions or ideas would be much appreciated.

Thanks!

Editted to include this:

The Download Window in Safari posts this each time I attemt to download a file:

Cannot create file

 

Thanks for your reply. I do not have multiple accounts on this computer and the default place for saving downloads has been and currently is my desktop (I just double checked to make sure).

I have 18 GB of free space on my computer. I don't remember setting panther or jaguar up to limit the amount of space that I can use. How do I check this?

Thanks again.