Uhmm... that will open a file, read it line by line into an array, then loop throught the array an stick all the elements together, erasing the newlines along the way.
Better use the proper method:
// get contents of a file into a string
$filename = "/usr/local/something.txt";
$fd = fopen ($filename, "r");
$contents = fread ($fd, filesize ($filename));
fclose ($fd);
Copied 1:1 from the manual
http://www.php.net/manual/en/function.fread.php