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Yes, and right now it will sit in your wallet at 0 confirmations and get rebroadcast once in a blue moon (ok, not that long, but I'm too lazy right now to dig out the rules for when transactions are rebroadcast) until it DOES make it into a block.
And you'll have to hack your copy of bitcoin to be able to send a less-than-.01 transaction without a fee; the RPC send* methods automatically add the fee, and the GUI will tell you a fee is necessary (and won't let you send unless you agree to it).