Is there a program I can download to add an option to create a new file to the contextual menu of finder? NuFile doesn't seem to work in Snow Leopard.
If you are happy using a toolbar button instead of the contextual menu, you can use New Text File Here from Jonas Wisser. Just drop it into Finder's toolbar.
Note: As of OS X 10.11.4 this program no longer seems to be working.
Path Finder also adds a contextual option for creating new files, but it's shareware. Lots of other cool feature though.
This also works pretty well if you're willing to spend a bit of money: https://langui.net/new-file-menu/