>I am using FILE() with a full path and a full file name. It works great unless the file is located directly under the root. FILE('C:\upload.txt') will return .T. as long as upload.txt is in the path. It does not matter that c:\upload.txt does not exist.
>
>Is this known behavior for FILE()? What are my other options?

This is a known bug and is as such in the MS KB.

I have a wrapper called filex.prg and I use this code in it:

LPARAMETERS tcFile
LOCAL lcPath,llFile,lcFIle

lcFile=ALLTRIM(tcFile)

lcPath=SET("PATH")
SET PATH TO 
llFile=FILE(lcFile)
SET PATH TO (lcPath)
RETURN llFile

hth,