This problem has been seen if path to the remote directory is specified with a back slash instead of a forward slash and the back slash and the letter following create an escape sequence with white space.
Example:
xfile add "c:\temp\my_module.v" -copy
In the above arguments, the module is not found because the back slash combined with the 't' is interpreted as a tab character ("c:<tab>tempmy_module.v" ).
Changing the backslashes to forward slashes fixes the problem.
Although the syntax is not correct, Project Navigator should be able to handle the syntax more gracefully and issue a proper error message.
This problem has been fixed in the latest 9.2i Service Pack available at:
http://www.xilinx.com/xlnx/xil_sw_updates_home.jspThe first service pack containing the fix is 9.2i Service Pack 1.