on *:TEXT:!requests:#:{
^ first of all, there IS no $2 allowed with that. I'm guessing you want them to do something like !requests 1 to read the first request in the file? If so you'd want to use:
on *:TEXT:!requests *:#:{
"..but i want it to post seperate lines of the requests.txt file on seperate lines in the chan"
Not following completely. If you want to display ALL requests in the file, just use:
/play #request requests.txt
that'd message ALL the lines in requests.txt to the chan, with a one second delay between each line. Check /help /play for more info.
Hope that answers your question.
-Venoman
