If one opens a file with a wild card filter (*.*) All files, this setting is retained when trying to Save code in a new tab. The user is expecting the file extension to be the default .sql, however, Toad for Oracle 10.6.1 still retains the wildcard extension and thus generates a “The above file name is invalid.” in the Save as pop-up window. Toad for Oracle did not act this way in version 10.5.
WORKAROUND:
1. Define the full name of file and its extension
-OR-
2. Select the file type in the save dialog before clicking Save.
STATUS:
Waiting for fix in a future version of Toad for Oracle.