This error occurs when attempting to create a new project using the "project new name" Tcl command without specifying an "ise" extension when the project name is less than four characters.
For example, creating a new project with the Tcl command "project new joe" causes the above error. However, creating a new project with the Tcl command "project new joe.ise" does not cause the error. Also, "project new joe1" works because there are more than three characters in the project name.
This problem has been fixed in the latest 9.1i Service Pack available at:
http://www.xilinx.com/xlnx/xil_sw_updates_home.jspThe first service pack containing the fix is 9.1i Service Pack 1.