WOW, I am suprised so many have taken interest in my little problem, as requested here is where I am at right now with the code:

open(TXT,"$ARGV[0]") || die "Cannot open the $ARGV[0] file";
$instr = do{local $/; <TXT> };
close(TXT);
chomp($instr);
$instr =~ s/\n+/\n/g;
$instr =~ s/\-\s+([^\n]+)/\'$1\'\//g;
chop($instr);
open(TXT,">$ARGV[1]") || die "Cannot open the $ARGV[1] file";
print TXT $instr;
close(TXT);
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Any suggestions? P.S. I didn't do this all by myself, but I at least understand what is going on.