this should do the trick:
#ALIAS makeList {
   #VAR line 1
   #FILE 1 myBigListOfSpells.txt
   #UNTIL (%read(1, @line) = %concat("Level ", %1, ":")) {
      #ADD line 1
      }
   #WHILE (@record <> %concat("Level ", %eval(%1+1), ":")) {
      #ADD line 1
      #VAR record %read(1, @line)
      #VAR spell ""
      #LOOP %eval(%numwords(@record)-2) {
         #VAR spell %concat(@spell, %word(@record, %i))
         }
      #ADDITEM spellList %replace(@spell, " ", "")
      }
   #CLOSE 1
   }
Troubadour 