I reckon I've been bitten by this before, though it was a while ago, and I'm a little hazy on the details. But, if I've got it right, there's a 'type.exe' in your path that's being invoked (instead of the shell's 'type' command). To make sure you get the shell's 'type' command I think you can also run something like:

perl -e "system('type myfile.txt') <NUL"
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Does that produce expected results ?

Cheers,
Rob
Update: The above command might not be quite correct. In order to invoke the shell's 'type' command, I think it should have been written as:

perl -e "system('type myfile.txt <NUL')"
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Of course, on most systems (such as mine), it won't matter - as the shell's 'type' command gets invoked, anyway.