On my machine (maggie, with FC6), gedit does not work with Local Drive Redirection, running unfsd on Windows. Problem verified both with FAT and NTFS. Both reading and writing fails, even though all system calls and NFS calls succeeds. (Saving actually works perfectly, but gedit still complains.) The problem does not happen with Ossmans FC6 or his SLED10 image. Looking in the GNOME bugzilla, there are several bugs related to saving files, for example http://bugzilla.gnome.org/show_bug.cgi?id=336738. One guess is that gedit is unable to deal with the large inode numbers involved.
Haven't heard of this issue in many years. Assuming it got fixed.