The problem you are having with your hand histories is almost certainly because of a line wrapping problem. If you are saving your hands using Notepad you must make sure that you turn wrapping off. You do this by going to "Format" menu option and making sure that the "Word Wrap" option DOES NOT have a check beside it. If it does, click on it to remove the check mark. If you save your hand histories using WordPad you can turn off wrapping by selecting Options from the View menu and clicking on the column labeled "No Wrap". Copy and paste your hand histories again and save the file. Try the import again.
Poker Tracker CANNOT read files unless they are plain text (not UNICODE text or some other format like MS Word.