I'd try something like this.
try:
f = open(filePath)
except IOError:
print "No such file: %s" % filePath
raw_input("Press Enter to close window")
try:
lines = f.readlines()
while True:
line = f.readline()
try:
if not line:
time.sleep(1)
else:
functionThatAnalisesTheLine(line)
except Exception, e:
# handle the exception somehow (for example, log the trace) and raise the same exception again
raw_input("Press Enter to close window")
raise e
finally:
f.close()
The loop checks if there is a new line(s) since last time file was read - if there is, it's read and passed to the functionThatAnalisesTheLine
function. If not, script waits 1 second and retries the process.