Matthew,

You might want to look at function read.table.ffdf in the ff package, which can 
read large csv files in chunks and store the result  in a binary format on disk 
that can be quickly accessed from R. ff allows you to access complete columns 
(returned as a vector or array) or subsets of the data identified by 
row-positions (and column selection, returned as a data.frame). As Jim pointed 
out: all depends on what you are going with the data. If you want to access 
subsets not by row-position but rather by search conditions, you are better-off 
with an indexed database. 

Please let me know if you write a fast read.fwf.ffdf - we would be happy to 
include it into the ff package.


Jens

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