This is your problem:

TotalFile = TotalFile & FileData & vbCrLf


Try:
Code:
Dim m_filename As String 
Dim FileData As String 
Dim TotalFile() As String 
Dim result() as string
Dim final as string
Open m_filename For Input As #1 
FileData  = input(lof(1),1)
close #1
totalfile = split(filedata,vbcrlf) ' an array of lines
for x = 1 to ubound(totalfile)
    if totalfile(x) > "" then 
        Redim Preserve result(ubound(result)+1)
        result(ubound(result)) = totalfile(x) & vbCrLf
    end if
next x
final = Join(result)
' final is now one giant string, like your old totalfile was