That's really strange. Edit & View are identical for local & remote. When it's a remote file the file is downloaded and viewed/edited.
Make sure you don't have shift depressed when Viewing/Editing as this forces it to load into the internal editor.
Based on your errors it seems like it tried to open the file in the internal editor, if does this for the ftp, it should of did this for the local view as well.
I tested with my setup and I was unable to reproduce any problems. Perhaps a special debug version would give us some ideas of where things go wrong.
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