I am using v3.08-2 on WinNT.

When the "Make an index" option is selected (Options > Log, index, cache) the
"index.html" file in the project folder (eg: c:\websites\project1\index.html)
is corrupt.  The file contains both code for a "Local Index" and the code of
the website's index page.  It is like it is two files mashed together.

Deselecting this option removes the problem.