node.js fs.readFile not working in Windows

Right now I am on an XP box, but this is the same thing on Vista.

I am using node.js v 0.6.14

the following does not work:

var fs = require("fs");
fs.readFile(filename, "utf8", function(err, data) { ... } );

I do NOT get anything in err, but data contains the following:

'{' is not recognized as an internal or external command, operable program or batch file.

If I remove the encoding parameter, then I do get the raw buffer data back. Is this a known issue on the Windows port of node or am I completely missing something? If it is a known issue, are there any good workarounds?

What kind of file is it? I created a text file named "text.txt" with the contents of "this is a text file".

I don't have an XP VM handy, but this worked fine for me in node 0.6.9:

var fs = require("fs");

    console.log("err: " + err);

with output of:

err: null
this is a text file