OK. The foreach statement structure makes more sense, but I'm still at an impass. It still gives the same result. There are actually several passes made in the regex to get all the formatting done, like so:

foreach (@FILE) {
   s/[0]{4}\n/<v2\.05><e1>\n\@Normal\=<Ps100t0h100z12k0b0cKf\"ArialMT\
+">\n\@Normal\=\[S\"\",\"Normal\",\"Normal\"\]<\*L\*h\"Standard\"\*kn0
+\*kt0\*ra0\*rb0\*d0\*p\(0,0,0,0,0,0,g,\"U\.S\. English\"\)>\n\@\$\:<\
+*J\*p\(9,\-9,0,9,0,0,g,\"U\.S\. English\"\)><z8f\"Helvetica\">\n/;
   s/^[0-9]{4}\n/<\*ra\(1,0,K,100,\-9,0,0\%\)\*p\(9,\-9,0,7,0,0,g,\"U\
+.S\. English\"\)><z2>\n<\*ra0\*p\(9,\-9,0,9,0,0,g,\"U\.S\. English\"\
+)><Bz8>/;
   s/^[0-9]{4}D\n/<\*ra\(1,0,K,100,\-9,0,0\%\)\*p\(9,\-9,0,7,0,0,g,\"U
+\.S\. English\"\)><z2>\n<\*ra0\*p\(9,\-9,0,9,0,0,g,\"U\.S\. English\"
+\)><Bz8>\n\*\*\*\*\*\*DISPLAY\*\*\*\*\*\*\n/;
   s/(<Bz8>)([^ ]*)/$1$2<\$>/;
}
[download]

Could one of the other passes be screing something up? Could there be an invisible character between <Bz8> and the next word that is screwing it up? It does it right when it hits:

<*ra0*p(9,-9,0,9,0,0,g,"U.S. English")><Bz8>
******DISPLAY******


DRIVER OPENINGS
[download]

but:

<*ra0*p(9,-9,0,9,0,0,g,"U.S. English")><Bz8>KETTLE WORKERS F/T & P/T, 
+Nov.-Dec., $6.90/hr. Must be clean, honest & neat. Apply at the Salva
+tion Army, 316 Pleasant St., Wmtc., wkdys., 9-6 p.m.
[download]

still screws it up.