OK, this is really weird - when I download a file, no matter what kind (ZIP, DMG, what have you) the file is loaded inside the browser window (the downloads window doesn't even react). The browser displays a grey screen as my ZIP file download progress shows in the address bar, as if a page would be opening. I can then save the file with File->Save As This happens in all webpages, and not only in latest Safari, but also on latest Webkit. I didn't see any preference that could control this. The only remedy right now, is to right-click and "save linked file as ...", because direct click on a link causes this issue. Any ideas?