Nope, most certainly broken. Here, try this:

<verbatim>9:14 % fs info
project-name: <unnamed>
repository:
local-root:
project-code:
server-code:
checkout:     2011-03-12 17:04:53 UTC
parent:       2011-03-12 17:03:15 UTC
tags:         trunk
comment:      files ended up in the wrong dir (user: sean)
9:14 % fs ls


test.sh
9:14 % pwd

9:14 % echo asdf >> file1.txt
9:14 % ll
total 16
-rw-r--r--  1 sean  wheel  11 Mar 12 09:14 file1.txt
-rw-r--r--  1 sean  wheel   6 Mar 12 09:03 file2.txt
9:14 % fs di
fossil: file outside of checkout tree:
Exit 1
9:15 % fs di file1.txt
--- file1.txt
+++ file1.txt
@@ -1,1 +1,2 @@
 test1
+asdf
</verbatim>