I must be slow this morning, forgive me. Let's start over here with your initial statement (now that I actually read the title of the post).
Creating a text file isn't working for me
So, everything I said about the default folder isn't going to create a file, to do that, you need 2 things, a path, which is what your building tFile to be, and something to put INTO that path.
This code puts the contents of an existing file into a variable :
put URL("file:" & (specialFolderPath("Documents") & "/PC.txt"))
into tfile
To put that variable (or whatever) back into a file, you need to reverse it:
put tfile into URL("file:" & (specialFolderPath("Documents") & "/PC.txt"))
NOW that we're on the same page, are there any other questions hee hee.
LOL I see Klaus beat me too it