[Tefra]

you basically want to echo each line right ?

PHP Code:

$lines = explode("<br />", $code);
foreach($lines as $line)
{
    echo $line;
    echo "<br />";

} 


your way is too complicated for what you want to do, but anyway here it is

PHP Code:

$codelen  = strlen($code);
$nextline = strpos($code,'<br />');
 while ( $nextline ){
    $line = substr($code,0,$nextline);
            echo '1LINE ' . $line . '<br />'; // TESTING
    $code = substr($code,$nextline,$codelen);
            echo '1CODE ' . $code . '<br />'; // TESTING
    $nextline = strpos($code,'<br />');
            echo 'NEXTLINE ' . $nextline . '<br />'; // TESTING
} 


added the $codelen and changed the substr in the loop for the $code