If you are reading your post in textarea, you can use the break function using the newline character as a separator to get each "line" in the variable as a new array element, then you can explode on your array elements.
i.e.
$sometext = "balh | balh blah| more blah \n extra balh |some blah |this blah";
$lines = explode("\n", $sometext);
foreach($lines as $oneLine)
{
$lineElements[] = explode("|", $oneLine);
}
then you have a 2d array of your ale.
If you are reading a file, you can simply use the file function registered here:
http://us2.php.net/manual/en/function.file.php
to get each line of the file as an element of the array.