In certain supported applications at the moment such as TextEdit, Pages, Numbers, Preview, and Keynote, the Save command typically only appears the first time you save a file. After that, the Save command is replaced by Save a Version, a new feature in Lion. Each time you save a file, a snapshot of the file is created – a new version, if you will.
What this means, is that you can revert back to an earlier version at any time. Lion only records the changes that you make between versions and stores it in the original file. If you wish to revert back to a previous version of the file, choose File > Revert Document from the menu.
All versions of the file are then displayed in a Time Machine-like format. Click the version you want to use and then click the Restore button.
In certain applications, a new version will be saved every few minutes – this is Lion’s new AutoSave feature. To manually save changes (create a new version) to your document, select File > Save a Version from the menu or press the Command + S keystroke combination.
Note however, that when you create a duplicate of a document using the new Duplicate feature, previous versions are not brought in to the new duplicate.
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