Open Photodraw 2000 and go to Help/Contents and Index/index tab. Type "jpg" as a keyword and you'll see a line saying "The file format I want does not appear in the Save as type list".
Follow the instructions given there.
Basically, it sends you via the Control Panel & Add/Remove Programs, to a 'repair' option among others. Might be worth a try - if not post back and we'll try something else :)