iamasmith,
You probably already found all of this, but mentioning just in case. You can get around the save/load issue by using import/export.
Using 'save', seems to save it as an "_" (underscore), even though the name is clearly there. Saves it under "/home/zaurus/Documents/application/octet-stream/_".
Using 'saveas', at least retains the same name you type in, but under "/home/zaurus/Documents/text/plain/filename".
In both cases, I told it to save to the SD card, but went to the places listed above for some odd reason.
By using import/export, you can definitely control where it loads and saves.
I'm using the Sharp 3.10 ROM, but as you mention it shouldn't matter (in your case as well) since it's looking for the old Documents layout. At any rate, import/export definitely works and it will still runs your apps in the window. I mostly use vi/command line anyway, but thought this app would be fun to have on hand if I can't telnet for some reason. Though I seem to still default to the Konsole anyway.
Hope that helps.
- Michael