This should work for you: 
use strict;

my %bad = ("Zwire6" => 1, "zwire7" => 1);#this is case sensitive
open(OUT, ">", "out.txt");
my @section;
my $adjust = 0;
my $is_server = 0;
my $server_id;
my $throw_away = 0;

my $line;
while ($line = <DATA>) {
    chomp($line);
    if ($line =~ m/^\[/) {
        flush_section();
        $#section = -1;
        $throw_away = 0;
        push @section, $line;
        if ($line =~ m/^\[server(\d+)\]/) {
            $server_id = $1;
            $is_server = 1;
        } else {
            $is_server = 0;
        }
    } else {
        push @section, $line;
        if ($is_server) {
            if ($line =~ m/^servername\s*=\s*(.*?)\s*$/) {
                if (defined($bad{$1})) {
                    $throw_away = 1;
                    $adjust ++;
                }
            }
        }
    }
}
flush_section();
close(OUT);

sub flush_section {
    if (!$throw_away) {
        if ($is_server) {
            $section[0] = "[server".($server_id - $adjust)."]";
        }
        foreach my $line (@section) {
            print OUT $line, "\n";
        }
    }
}

__DATA__
[reports]
yearlystore = 
quarterlystore = 
monthlystore = 
weeklystore = 
dailystore = 
[server1]
logfilepath1 = F:\Logfiles\ZWire\Zwire4\split-0\ex*.log
servername = Zwire4
logfilepassword = 
logfileusername = 
id = a104136320003954
[server2]
servername = Zwire6
logfilepath1 = f:\logfiles\zwire\zwire6\split-0\ex*.log
id = a104136346513171
logfilepassword = 
logfileusername = 
[server3]
logfilepath1 = F:\Logfiles\ZWire\Zwire4\split-0\ex*.log
servername = Zwire4
logfilepassword = 
logfileusername = 
id = a104136320003954
[server4]
id = a104136351461256
logfilepath1 = f:\logfiles\zwire\zwire7\split-0\ex*.log
logfilepassword = 
servername = zwire7

[download]

In reply to Re: Searching for and removing multi-line file entries by pg
in thread Searching for and removing multi-line file entries by ibanix

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