ActiveX objects, as far as I know, requires some sort of Microsoft intervention or emulation... that is, you probably need to do more than just create an active X object in script.
I assume, then, that you are running this in IE and on Windows, or are familliar with this type of object (I am not).
However, a quick lookup to MSDN says:
http://msdn.microsoft.com/en-us/library/2z9ffy99
Looks like you are close. GetFile seems to require an absolute path. Try instead:
fileObj = fso.GetFile("C:\foo.txt"); //this assumes the file lives on the C:\ drive.
Hope that helps.
Alternatively, as I had suggested above (and others also tried to build upon), is you upload a file to your server using a traditional file input (<input type="file" name="upload" .... />), and let the server process the file for you, then spit out a return value that can be JSON encoded or any other encoding you like, and then store that in a javascript variable. This would be cross browser / cross platform, and allow you to do a bit more with the data coming in.
Ryan