Creation of log files to my backup area works ok.
Files are saved as .txt
When I open the .txt file for the first time it is formated as it should be.
If I make any changes to it, resave it, it scrambles the format.

Any ideas?

Thanks!

The data is stored in raw form, just like it is when it comes across the wire. For example, a line-feed is a linefeed and a carriage return is a carriage return and they don't always come together, as one would expect in a normal Windows or DOS text file.

My initial guess would be that your editor is converting all Linefeed characters to CR/LF pairs, but I'd have to see a before&after copy of the text file to be sure.