hey i have never used Objective C either. but would i would suggest is adding 101 printf(char* message); statements if needed just to find out where it fails. The error you got when your program crashes would be helpful. not sure if Xcode has a debugger but a few breakpoints would help. i also found something on reading txt files in objective C it used a different reading function than you did.
http://maccoder.blogspot.com/2007/02/re ... using.html
initWithContentsOfFile:(NSString *)
worst comes to worst use stdio functions and read out the contents out as a char* and then convert to a NSString object. assuming there is some way of doing that.
and like prey said releasing the NSString theFileContents is not a good idea if you are not certain what it does with the NSString pointer when you call the [theTextView setString:theFileContents]; like if it copys the contents of NSString* or just copys the pointer.