The File API has been updated. See this post: https://groups.google.com/forum/#!topic/phonegap/GKoTOSqD2kc
file.file(function(e) {
console.log("called the file func on the file ob");
var reader = new FileReader();
reader.onloadend = function(evt) {
app.log('onloadend');
app.log(evt.target.result);
};
reader.readAsText(e);
});