This is just a WAG, but I remember playing around with something similar awile back, and had some luck by rewinding the file handle after every read.

Something like (totally pseudo-code):

sysopen FH, /dev/fd0, O_RDWR|O_CREAT,0666 or die "Cannot open : $!";

while(1){
seek FH, 0, SEEK_SET   or die "Cannot rewind $file: $!";
my $data = <FH>;
#truncate FH, 0   
print "$data\n";
}
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The error "error that says "item O_RDONLY isn't numeric at line 3" may be caused by not having "use Fnctl;" at the top.