What do you mean with carriage returns?
Typically, some number of bytes are written, then a carriage return/line feed is added, so that when the file is opened in a text editor, there is not just a single record with 270000 characters in it. If the program that created the text file didn't put carriage returns in, then never mind. If it did, though, you must ignore them when reading the data.
Can this have anny affect?
Probably not. I tend to open files with the minimum capability needed, though.
The size function would not really help,
Why not?
I know that all bytes are read in correctly from the microSD, it seems there is a issue with Processing or the Easy Bluetooth Module.
Nice of you to mention this up front. I assumed that the problem was with the Arduino. But, how do you know that the data is all read correctly?
Have you added a counter to the Arduino side, to verify that the correct number of bytes is read from the file?
On the Processing side, you have some print() statements. Are rowcount and collcount printed correctly?
Have you tried the code without the bluetooth module in the picture? Just connect the Arduino and PC with the USB cable, and use Serial instead of Serial2.