Actually m made no difference in output. And what I had was working, it's just that the word "function" was in a comment and my regexp was lapping it up, so I will simply filter comments from the text before parsing it:

#!/arudev/bin/perl

use strict;

my $file = shift or die "must supply body file";

open F, $file;

my @text  = <F>;

my $text  = join '', grep { ! /\s+\-{2,}/ } @text;

my $regex = '(procedure|function)\b(.*?)\((.*?)\)';

while ($text =~ /$regex/gs) {
  print "*$1+$2-$3*",$/;
}
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Prince "I knew I was the regexp overlord" Pawn