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#8 should work, don't know whats going wrong I have tested like this

[akshay@aix Stuff]$ cat test
file1.XML.ftpfail.bz2
file2.XML.ftpfail.bz2
file3.XML.ftpfail.bz2
file4.XML.ftpfail.bz2
...

Make it simple no need of 777

You can try if your interest is just to unzip files rather than unzipping specific files in a file.lst

for i in *.bz2; do
bunzip2 $i
done

did you try post...

There might be carriage-returns can you post o/p of od -c file.lst

set IFS and read line


IFS=$(echo -en "\n\b")
while read i; do
bunzip2 "$i"
done <"file.lst"

Put double quote and try

bunzip2 "$i"How is your file.lst ?