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Default Don't understand results of UDF

In cell B4 I have (as text):

C:\Documents and Settings\XlsFileSavedAsText.txt

In Cell C2 I have:

=PathExists(B4)

In my Module1 I have:

Private Function PathExists(PathName As String) As Boolean
' Returns True If PathExists
On Error GoTo NoPath
x = Dir(PathName & "\*.*")
If x = "" Then GoTo NoPath
PathExists = True
Exit Function
NoPath:
PathExists = False
End Function

Why is my Cell C2 showing False
when I definitely
C:\Documents and Settings\XlsFileSavedAsText.txt Exists?

TIA,

Jim

 
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