You need to modify YOUR code to his, or HIS code to yours. Can't mix variable names. It just double-spaces lines, but you can put YOUR If string inside of the loop. (Hint)

Here's two ways:

Code:
Option Explicit

Private Sub Form_Load()
  Dim x As Integer, st As String, y As Integer
  Dim ff As Integer
  Dim strBuff As String
  Dim str() As String
  ff = FreeFile
  Open App.Path & "\to do.txt" For Input As #ff
    strBuff = Input(LOF(ff), ff)
  Close #ff
  ' ----------------- two ways to skin a cat --------------
  MsgBox "Lines = " & Len(strBuff) - Len(Replace(strBuff, vbCrLf, "x")) + 1
  ' -------------------------------------------------------
  str() = Split(strBuff, vbCrLf)
  MsgBox "There are " & UBound(str) + 1 & " lines in the file"
  Dim words() As String
  For x = 0 To UBound(str)
    words = Split(str(x)) ' Split into WORDS
    For y = 0 To UBound(words)
      st = st & str(x) & vbCrLf & vbCrLf ' one line for each word
    Next y
  Next x
  MsgBox st
End Sub