File Monitor in Central Mode on WinXP

Folks,
I am using the filemonitor in bbwin in central mode.  It finds the file 
if it is there but the NOEXIST does not work.

I have the following in client-local:

[nas]
file:c:/publicdata/logs/shouldnotbehere.txt

and I have the following in hobbit-clients:

HOST=nas
         FILE "C:/Publicdata/Logs/shouldnotbehere.txt" NOEXIST color=red

If the file exists it reports the file but nothing else.

Please advise.
Paul