I figured out what the problem was...
Here is my code:
header("Content-type: text/plain");
header("Content-Disposition: attachment; filename=test.txt");
readfile("C:\php\includes\\test.txt") //Have to escape the \t
exit;
When I set the code to my C:\php\includes\ directory, I forgot to escape the \t, so I was getting an error that it couldn't find the file in C:\php\includes est.txt
Stupid me - thanks for your help!