I am going to try these suggestions and see if they work.

Inger,
I put my ai file into my project folder for safekeeping until I am certain that I am happy with my graphic, then delete it later. I am not trying to insert an ai file into my html, so it is just sitting in there as a ghost, just in case I decide I need it later. I am assuming that this is OK, but maybe I should create a separate folder for supportive files like this? Do you think it matters at all?

Yep - thats a good idea esther - all my site folders have a "public_html" folder and a "shit" folder in them - if its online it lives somewhere in the public_html folder - otherwise it lives in the shit folder

I opened the file with ai, saved as...EPS, then deleted it! BAM! Gone!
Thanks!