Paladin,
Thanks! I still think it looks ugly, but with your suggestion I was able to do away with some code. Here is the modified code:

my $path;
while ( <LOGIN> ) {
    chomp;
    if ( s|\\$|| ) {
        $_ .= <LOGIN>;
        redo;
    }
    if ( /^\s*(export)?\s+PATH=(.*)/ ) {
        $path .= ':' if $path && substr($path, -1, 1) ne ':';
        $path .= $2;
    }
}
[download]

Cheers - L~R