Your InStr() test when reading the file will only be True if the line is only a "#" - i.e. if varInp = "#". Is this really what you want to do? I'm guessing you just want to skip lines that contain '#' - if so you want this:
If InStr(varInp, "#") >= 0 Then GoTo GoNext
If this isn't your problem then what do you mean by "it still does not work" - can you be specific about what is wrong?
"With the appearance of the AddressOf operator, an entire industry has developed among authors illustrating how to do previously impossible tasks using Visual Basic. Another industry is rapidly developing among consultants helping users who have gotten into trouble attempting these tasks." -Dan Appleman