I finally found the resolution. The problem is a conflict between PowerPoint97 and Adobe Acrobat 4.0.5. Both programs have to be uninstalled, then reinstall ppt97, and "Save as HTML" is available.
By the way, the MS knowledgebase has an article on this (Q262321), but the instructions...
The computer is running Windows 98SE with Office97 SR-2b. In PowerPoint, the 'Save as HTML' option is grayed out.
The MS Knowledgebase article Q169934 addresses the issue, and contains two solutions. Solution#1:Make sure Web Page Authoring (HTML) component is installed. I checked and it was...
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