I don't think I understand the question. Are you actually asking how to read from a terabyte flat file, or are you asking how to process a terabyte of sequential data? They are two (related) but distinct questions.
Sorry for not being clear the first time. Proper processing is what I'm after. The reading has to be accompanied by parsing. The file is divided into sections, and each section will have its own parsing / user-actions / processing / output.
Depending on language restrictions, you may be able to implement read streams that make a pass through the file and create appropriate call-backs when hitting each section...
[+] [-] gdp|16 years ago|reply
[+] [-] tamersalama|16 years ago|reply
[+] [-] nshah|16 years ago|reply
[+] [-] wmf|16 years ago|reply