You can connect the remote stdin to the local stdin if you use another descriptor for reading the file.
29 while read N T S P <&3
30 do
31 strNAME=$N
32 strIDENT=$T'*'$S
33 ...
Now, it doesn't break, that is. The ssh just eats up all stdin which is redirected from .outlist.tmp, and the while read cleanly finishes on end-of-file. Did you consider using another file...