This works for me in a Linux environment:
perl -n -i.bak -e '$r=1 if m/<process-type="Remote">/;$m=1 if $r && m/<\/module-data>/;print;if ($r and $m){print "blah\n" x 7;($r,$m)=(0,0);}' file.txt
file.txt now contains:
--------------------------FILE------------------------------------------
<process-type="Local">
<module-data>
</module-data>
<process-type="Remote">
<module-data>
</module-data>
blah
blah
blah
blah
blah
blah
blah
--------------------------FILE------------------------------------------
d5e5
Practically a Posting Shark
810 posts since Sep 2009
Reputation Points: 159
Solved Threads: 159