Hi Fred,
I think your problem is 2-fold.
First, it seems your data file's line endings have been modified (perhaps by loading in Excel?) and now you have alternating 'good' lines with blank lines. Or perhaps that is an artifact of pasting into the forum? If you suspect the file may have had an opportunity to change between exporting from the MS and importing into iolite, the first thing to try is a pristine copy of the file if you still have it somewhere. Alternatively, more advanced text editors should be able to replace the line endings (e.g. search for '\n\n' and replace with '\n'). If you're not sure how, you can email the data file to joe at iolite-software.com and I'll take care of it for you.
Second, the time stamp format is not one of the presets, so you'll need to write it in manually. I modified a file here to match your time stamp and was able to use "MMM d yyyy hh ss".
Cheers,