Strange Error When Trying to Editing

[NY Jester]

I just installed WP on a new blog and Im trying to edit the side bar/ footer, etc and I am receiving this error.

Sorry, can’t edit files with “..” in the name. If you are trying to edit a file in your WordPress home directory, you can just type the name of the file in.

I have no idea what this is referencing.
I can FTP the files in to m PC and then back again, but it'd be nice to be able to use the online theme editor.