the attached reduction
Click on first link and observe the behavior
Click on second link and observe the behavior.
clicking the first link - the file is downloaded.
clicking the second link - the file opens directly in browser.
III Conclusion: The behavior is inconsistent. If the txt file is saved as ANSI with non-ASCII characters; Safari downloads the file. If the text file is saved as UTF8 or saved as ANSI with only English content; Safari opens the file directly in the browser.
IV Other browsers:
Opera: not ok
V Nightly tested: 30628
Created attachment 19577 [details]
Confirmed, but only on Windows. Webkit on Mac OS X 10.5 works as expected - opens both text files inside browser window.
I seem to hit this all the time. It's really annoying.