I just tried again (saving as Mp3 and choosing a file folder) And after waiting about a minute, it comes out of the "not responding" hangup and works! I guess I just needed to wait!
I still have a second computer that hangs up for about 5 minutes when trying to select a destination for saved files. Must be some issue with the system itself. All my computers are on a network, but I am not trying to save across the network from one computer to another.....so I don't know.