Update (31/07/2006) - Tony Bierman writes on how to add the link to the site settings using a feature.
I dont know if I missed something, but I searched and searched and the link to save a sub site as template just wasnt there!
I finally decided on a "bugger all" solution - I went to the top level site, where the link "save site as template" is in the site settings and clicked it.
I noted that the page that starts the save proccess is under "/_layouts/savetemplate.aspx".
I went back to the site I was trying to save as template, and just added the "/_layouts/savetemplate.aspx" to the url (example: http://my server/sitedirectory/teamsite1/teamsite2/_layouts/savetemplate.aspx)
To make a long story short - this works just fine. I wonder if microsoft just forgot this link (I couldnt find documentation to it in the known issues list)
Liked it? kick it!