Output file formatting/loop problems -- HELP?

[Maggie]

My code is supposed to enumerate each line of file (1, 2, 3...) and
write the new version into the output file --

#!/usr/bin/python

import os.path
import csv
import sys

#name of output file
filename = "OUTPUT.txt"


#open the file
test = open ("test.txt", "r")

#read in all the data into a list
readData = test.readlines()

count = 0

FILE = open(filename, "w")

for item in readData:

   count = count + 1
   tmp_string = str(count) + '	' + item
   print >> FILE, tmp_string

else:
   print 'The loop is finito'

---

here is the sample file --

23
123
231
1231

---

the output file i get looks like this:

1	23
123
231
1231

--

my question is why the enumeration starts and stops at first line and
doesnt go through the entire file --

(file is saved as .txt, so hypothetically no .rtf formatting that
would screw up the output should be present)

thanks for your help