> But before you can use CFLOOP the file had to be read into memory ... 

No, that is not how the <cfloop file="" row="" /> tag works. Using that syntax 
a person processes one line at a time. See this post (under "Step 3" main 
header starting with "1. Reading Lines"):

http://coldfused.blogspot.com/2007/07/new-file-io-in-coldfusion-8.html 

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