Problems with create new file

What type of file does it create?I have ben having problems with using that feature and to be honest i dont see it as being useful.It would be good if the file created is a notepad file.can someone tell me the importance of that feature really?

Hi Kev,
That feature was added so that you can create a new text file and then edit it with the internal editor. Actually you are right, it seems confusing and I am going to remove it from the toolbar and add it in the editor instead in the next version.