bug#3969: 23.0.96; Cannot use File > Visit New File on MS Windows

emacs -Q
 
Choose menu item File > Visit New File
 
You get the Windows `Find file:' dialog box. Enter the name of a new
file, e.g. `xxxx.txt', in field `File name:' and click button
`Open'. You get this error dialog box:
 
 Find file:
 
  xxxx.txt
  File not found.
  Please verify the correct file name was given
 
   [OK]
 

In GNU Emacs 23.0.96.1 (i386-mingw-nt5.1.2600)
 of 2009-07-09 on SOFT-MJASON
Windowing system distributor `Microsoft Corp.', version 5.1.2600
configured using `configure --with-gcc (3.4)'