noviceak,
Welcome to the NI Discussion Forums.
I created a quick VI in LabVIEW 4.1 that displays a file dialog and then passes that file path to "Read Characters from File.vi" (which in turn calls Open File+.vi). I then opened this file in LabVIEW 8.2 and ran it successfully (see code screenshot below).

When you say there is a file in the specified directory are you using the file dialog to browse to the directory or to select the specific file? Open File+.vi expects the path to a file rather than a directory - that is C:\folder\file.txt rather than C:\folder. You might also want to create an indicator or probe to see what path is being passed to Open File+ to ensure it is what you expect.
I feel like I should also say that in the days (years) inbetween LabVIEW 4.1 and 8.2 the file operation VIs have changed significantly. While the old Open File+.vi still lives in vi.lib for compatibility purposes we no longer recommend using it for new applications.
I hope this helps and again, welcome to the community.
Regards,
Simon H
Applications Engineer
National Instruments
http://www.ni.com/support/
Message Edited by Simon H on 01-18-2007 08:01 PM
Message Edited by Simon H on 01-18-2007 08:03 PM