OS X: Can launch app but not file

[Kaveh Bazargan]

This works for me:

 launch "/Applications/BBEdit 7.0/BBEdit.app"

but this doesn't:

 launch "/Applications/BBEdit 7.0/myfile.txt" with "/Applications/BBEdit
7.0/BBEdit.app"

If BBEdit is not running, I get "no such program"
If it is running, I get "process already open"

Any guidance please.
-- 
Kaveh