Peter - thank you for taking the time to respond. I am not sure if this response was intended for my issue. Perhaps I didn't explain clear enough in my email, I am running the scripts as "scheduled scripts" from FM Server.
Your solution seems to be be PHP based and interesting, perhaps I will keep it in my back pocket for a future need; but I do not think it applies here; perhaps you intended as a response to someone else's question.
Is File 2 in a folder? Try adding the full path to the file references in File One.