Query buffer editing on Win32 version of postgresql?

I was attempting to set up my psql client on the Win32 version of
postgres 8.0 beta 2 to be able to use an external editor. I set the
environment variable in windows like so:

PSQL_EDITOR="c:\progra~1\Textpa~1\Textpad.exe"

which does appear to work correctly. However, I get the following
when attempting to edit the query buffer:

db_merrymaids=# \e
could not open temporary file ".\psqA8C.tmp": File exists
db_merrymaids=#

If I specify a file using

db_merrymaids=# \e somefile.txt

Textpad does launch and ask to create the new file. But, I don't need
to create a new file. I need to edit the built-in query buffer. :-)
Any ideas why I'm getting the "File exists" error on the temp file? Bug maybe?

Thanks for any help