The file: "C:\Program Files\Jasc Software Inc\Paint Shop Pro 9\Paint Shop Pro 9.exe" defnitely exists on my PC.

This returns TRUE as expected:
FILE("C:\Program Files\Jasc Software Inc\Paint Shop Pro 9\Paint Shop Pro 9.exe")

This is the short file name for the file: "C:\PROGRA~1\JASCSO~1\PAINTS~2\PAINTS~1.EXE"
When I try to RUN &cShortFileSpec, it works.
If I do DIR "C:\PROGRA~1\JASCSO~1\PAINTS~2\PAINTS~1.EXE", it shows
... but FILE("C:\PROGRA~1\JASCSO~1\PAINTS~2\PAINTS~1.EXE") returns FALSE!!!!! File is neither SYSTEM nor HIDDEN.

WTF? Bug or not?