A script of creating a file named "sc": srk@srk:~/foo$ cat > sc Hello <CTRL-D> srk@srk:~/foo$ ls srk@srk:~/foo$ cat sc Hello srk@srk:~/foo$ echo * sc srk@srk:~/foo$ ls -al total 6 drwxr-xr-x 2 srk users 1024 Sep 15 12:27 . drwxr-xr-x 63 srk users 5120 Sep 15 12:24 .. ls also ignores directories called sc (not too surprising really)
Are you sure your system has not be compromised? This works fine in my RH6.0 w/ fileutils-4.0-1.