Did a test a moment ago and it worked perfectly. You just saved me half the code writing adamghering. Thanks!

Side note: And THIS is why I keep harping on Adobe to get a complete scripting guide together. Let's skip the political BS and get something together that the AE community can actually use!....... I actually just found myself going on a rant just now and deleted about six sentences. I will bite my tongue as this is not the spot for this rant.

Below are my new and now old way of creating a new file.
New way: (simple, straight forward and shorter)
Code:
//Create New txt document
var document = new File("~/Desktop/newfile.txt");
//Variable to hold carriage return character
var carReturn = "\r";
//Check if document already exists
if(document.exists){ //If it does, append more text to it
document.open("a");
document.write(carReturn + "Howdy");
document.close();
alert("New text was appended");
}else if(!document.exists){ //If it doesn't, create a brand new document and add this text
document.open("w");
document.write("This is the initial text.\rSome more text.\rYet another line.");
document.close();
alert("Brand new document saved.");
}
Old way: (still works, but a much more convoluted way)
Code:
var oldText = new Array();
var document = new File("~/Desktop/newfile.txt");
var carReturn = "\r";
//Check if document already exists
if(document.exists){ //If yes...
document.open("r"); //Open document for reading
while (!document.eof){ //Read old text until End Of File
oldText[oldText.length] = document.readln(); //Add old text to an array
}
document.close(); //Close document
oldTextString = oldText.toString(); //Convert old text to a string
oldTextFixed = oldTextString.replace(new RegExp( ",", "g" ), "\r"); //Fix old text by replacing all "," with carriage returns
document.open("w"); //Open document for writing
document.writeln(oldTextFixed + carReturn + "My new text"); //Write old fixed text then add my new text
document.close(); //Close document
alert("New text was appended");
}else if(!document.exists){ //If no...
document.open("w"); //Open document for writing
document.write("This is the initial text.\rSome more text.\rYet another line."); //Create a brand new document and add this text
document.close(); //Close document
alert("Brand new document saved.");
}