by calling while() inside the while() you are looping in side the line for every line.

but if you have some 'standard' separators in your file you could loop between separators with while loop, by defining the separators with special variable $/ something like :

open (FILE, "<", $ARGV[0]) || die "$!";

$/ ="seperator";
while (<FILE>){

  ## process lines between separators but don't forget that you define
+d record separator as "separator" !!!
}
$/ = "\n";  # return the record separator to standard or if it is a st
+and alone script this is not necessary because you are finished
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