cordova-2.0.0 FileWriter issue

e.js

var CREDENTIALS_FILE_NAME = "credentials.json";
var credentials;

// INIT -- Wait for PhoneGap to load
document.addEventListener("deviceready", onDeviceReady, false);
function onDeviceReady() {
	window.requestFileSystem(LocalFileSystem.PERSISTENT, 0, initCredentialReader, fail);
}
function initCredentialReader(fileSystem) {
    fileSystem.root.getFile(CREDENTIALS_FILE_NAME, {create: true}, gotFileEntryReader, fail); 
}
function gotFileEntryReader(fileEntry) {
    fileEntry.file(gotFileToRead, fail);
}
function gotFileToRead(file){
	var reader = new FileReader();
    reader.onloadend = function(e) {
        console.log("--FILE READER: "+e.target.result);
        
        if( e.target.result.length < 1 ) {
    		credentials = newCredentials();
    	} else {
    		credentials = JSON.parse( e.target.result );
    	}
    };
    reader.readAsText(file);
}
// END CHAIN

function initCredentialWriter(fileSystem) {
    fileSystem.root.getFile(CREDENTIALS_FILE_NAME, {create: true}, gotFileEntryWriter, fail); 
}
function gotFileEntryWriter(fileEntry) {
    fileEntry.createWriter(gotFileWriter, fail);
}
function gotFileWriter(writer) {
    writer.onwrite = function(e) {
        console.log("--- write success");
    };
    var toWrite = JSON.stringify(credentials);
    console.log("--- toWrite: "+toWrite);
    writer.truncate(0);
    writer.seek(0);
    writer.write(toWrite);
}


function fail(error) {
    console.log("--- write FAIL: "+error.code);
}

function newCredentials() {
	console.log("returning newCredentials!");
	return {
		"username" : "",
		"password" : "",
		"organization" : "",
		"cookieValue" : "" };
}

function getCredentials() {
	console.log("--- getCredentials: "+credentials);
	return credentials;
}

function saveCredentials( jsonCredentials ) {
	console.log('--- saveCredentials jsonCredentials: '+ jsonCredentials);
	
	credentials = JSON.stringify( jsonCredentials );
	console.log('--- credentials to save: '+credentials)
	
	window.requestFileSystem(LocalFileSystem.PERSISTENT, 0, initCredentialWriter, fail);
	return credentials;
} 

/*

GETTING THIS ERROR: 08-14 18:41:38.839: I/Web Console(2678): Error in success callback: File9 = {"code":7,"line":2863,"expressionBeginOffset":91407,"expressionEndOffset":91455,"sourceId":4122528,"sourceURL":"file:///android_asset/www/cordova-2.0.0.js"} at file:///android_asset/www/cordova-2.0.0.js:258

*/