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Ok, how does this translate to the RTB control?
With properties such as Font, ForeColer, BackColor etc. It's simply a matter of selecting the text you want (best done via REGEX) then changing the back and forecolors.
So I think your question is how do I filter incoming ASCII data? Use REGEX
How do I apply the formatting to the data? Use the RTB.properties and methods.
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In the font world there are two types of fonts proportional and non-proportional. Try using Courier New, it is a non-proportional font.
Your other issues, that of knowing the differences between RTF and regular text files is summed up with this statement: "They are both standards-based ways to present data to the end user."
Here's the RTF standard.
http://www.microsoft.com/downloads/details.aspx?FamilyID=e5b8ebc2-6ad6-49f0-8c90-e4f763e3f04f&DisplayLang=en
A Rich Text Box supports this standard.
TextBox is a more simple "standard" that has much less overhead. I don't know the standard for Textbox support but feel it must be pretty simply ASCII characters with very simple font control.