sorry to bump this as just wanted to add what I found that finally worked for me in similar circumstances:
http://support.sas.com/kb/20/784.html
data _null_; length data $1; INFILE in_filename recfm=n; file out_filenmae recfm=n mod; input data $char1. @@; put data $char1. @@; run;
Although this is written for STP web process it should apply when writting to another file as the _webout is similar. The secret seems to be the recfm=n and the @@s.
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