$output = '<h2 class=/"margin/">'.$date.'</h2>\n<p class=/"margin/">'.$post_content.'</p>';

<?PHP

$textfile = "Your/Path/to/file"; //set the path to the file here.
if ($text = @file("textfile")) //Don't display errors on file open
{
     $y = 0; //set the height var. for the array.
     for ($x=0; $x<count($text); $x++) 
     {
           $tmp = $text[$x];
           if ($tmp == "^&")
           {
                  //we have a line break
                  $textarr[$y][$x] = $text[$x]; //we will need to have the 
                                       //line break later when                                                          
                                       //outputing.
                  $y++;
            }
           else
           {
                 //we have text that is still part of a new item.
                 $textarr[$y][$x] = $text[$x]; 
            }
      }
      //Now to output the text
      for ($x=count($text); $x<>0; $x--)
      {
            if ($textarr[$y][$x] == "^&") //we have a line brake.
            {
                  $y--;
            }
            else
            {
                 echo $textarr[$y][$x];
             }
       }
}
?>