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When trying to save a toolbox created in ArcGIS 10.1 to an earlier version, the dialog window opens and allows the user to name the new toolbox, but after clicking OK, the new toolbox is not created.
Special characters are present in the toolbox name. This is common if the toolbox has a period in the name, such as: 'MySpecial10.1tools.tbx'
The period prevents the toolbox from being saved properly.
To resolve this issue do the following: