# now, squeeze all '\n', this can be also done by:
# s/^\(\n\)*/\1/
works fine if the hash tag is erased from the second line, 
but the next line in the sed script 
s/\n*/\
/
that you have left uncommented on your web page adds an extra blank 
line after every line. This is not the desired behavior. 
With best wishes 
Tomas Kana