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Default sorting and adding data that is not numeric

I was told it is possible to group large amounts of text data and total the
number of times this data occurs and create a summaried list of each with a
total. If this is true then how is it done? The data has over 20,000 rows.
What is the best way to add several excel files of data into one spreadsheet?
I am using Excel 2003.
 
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