Starting version 1.4 you can only perform product updates 'programmatic' only if Magento thinks you are in the admin panel.
If you try to do this from a non-admin page make sure you put this
Mage::app()->setCurrentStore(Mage::getModel('core/store')->load(Mage_Core_Model_App::ADMIN_STORE_ID));
before you call $product->save();
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