Warning msg in admin-function.php on Manage Files page (1.5 strayhorn)

Running 1.5 strayhornon WinXP. I am receiving warnings on the Manage -> Files page at /wp-admin/templates.php
On the right column under Recent, I receive the following warnings:

Warning: file(D:\web\blog/): failed to open stream: Permission denied in D:\web\blog\wp-admin\admin-functions.php on line 908

Warning: implode(): Bad arguments. in D:\web\blog\wp-admin\admin-functions.php on line 908

Line 908 of admin-functions.php sets $template_data. Here’s code from that function:
function get_file_description($file) {
global $wp_file_descriptions;

if ( isset($wp_file_descriptions[basename($file)] ) ) {
return $wp_file_descriptions[basename($file)];
} elseif ( file_exists( ABSPATH . $file ) ) {
$template_data = implode('', file(ABSPATH . $file));
if ( preg_match("|Template Name:(.*)|i", $template_data, $name) )
return $name[1];
}

return basename( $file );
}
Any suggestions?