OK....I got things working a bit better now. Thought I'd post the code here for others to view in case I confused way too many people. :-)

#!/usr/bin/perl
use strict;
use warnings;

my $PolicyName = "";
my $PolicyType = "";
my $ActivePolicy = "";
my $ClientServer = "";

open(INFILE, '<mas01_policy_dump.txt');

while(<INFILE>) {
    chomp;
    if ( /^\s*$/ ) { # true when the current line is blank
        next; # No need to process blank lines here
        }
    if ( /------------------------------------------------------------
+/) {
        # Print all the seperators
        print "$_\n";
        next; # No need for further checks
        }

    if ($_ =~ "Policy Name") {
        $PolicyName = $_; # New Policy, pay attention
        next;
    }
    if ($_ =~ "Policy Type") {
       $PolicyType = $_;
       next;
       }
    if ($_ =~ "Active") {
        if ($_ =~ "yes") {
            # Active Policy, we want this stuff
            $ActivePolicy = $_;
            print "$PolicyName\n";
            print "$PolicyType\n";
            print "$ActivePolicy\n";
            next;
            }
        else {
            # Inactive policy, skip ahead
            while(<INFILE>) {
                if ( /------------------------------------------------
+------------/) {
                    print $_;  # CRLF included since no chomp
                    last;
                    }
                }
            }
        }

    # So should be active policy and non blank line from here
    if ($_ =~ "HW/OS/Client" ) {
        # Mutliline!!
        print "$_\n";
        while(<INFILE>) {
            if ( /^\s*$/ ) { last; } # Blank line = end of lines
            chomp;
            print "$_\n";
            }
        next; # I should hit this line only when $_ is blank
        }
}
[download]

Now, I'm not done with this just yet, but I wanted to post the code that I have so far that got me through the primary issue I was dealing with at the time.

Thanks,
Dennis