If you are trying to save a site as a template in WSS v3 or MOSS 2007 you will find that the link “Save site as template” is only available under Look and Feel at the Top Level of the site collection. Not great if youve been working on a great template and want to move it or install elsewhere.

If you would like to save a sub site as a template you need to append _layouts/savetmpl.aspx to your sub sites url. I am guessing Microsoft just forgot this link and it will be around by the time we go RTM.

So just to make it clear. If your subsite is

http://portal/sitedirectory/team/default.aspx

You would go to

http://portal./sitedirectory/team/_layouts/savetmpl.aspx

and then you would be able to save the site as a template.