Are you saving the files with a dot (.) in the name? If so, it could be superseding the file extension, so that the computer treats it like a different file type. Could you attach one of these files to a post here?
Thanks, Brett, I was using dots in the name of the files. So I chose to rename the files, while this didn't correct the problem with the broken files, it did render my newly edited files good. Not using the dots in the name and saving as jpg, works!! Thanks for your help!