You are overwriting each line read.
code:
if Open(1, "E:\kix\text.txt",2) = 0
$x = ReadLine(1)
While @ERROR = 0
$x = $x + " " + ReadLine(1)
Loop
$= OLEPutProperty($objItem, "Body", "s", "$x") Close (1)
endif

Maybe you want to add @CRLF instead of a space between lines.

[ 04. September 2002, 13:38: Message edited by: Howard Bullock ]
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