Alright, here's how you'd write to an actual Excel file. Note that my method of splitting isn't as complicated as others because this is mostly about writing to Excel. You'll need the python-excel package to do this.
>>> data = []
>>> with open("data.txt") as f:
... for line in f:
... data.append([word for word in line.split(" ") if word])
...
>>> print data
[['nothing doing', 'nothing[0]', 'doing[0]\n'], ['hello world', 'hello[0]', 'world[2]']]
>>>
>>> import xlwt
>>> wb = xlwt.Workbook()
>>> sheet = wb.add_sheet("New Sheet")
>>> for row_index in range(len(data)):
... for col_index in range(len(data[row_index])):
... sheet.write(row_index, col_index, data[row_index][col_index])
>>>
>>> wb.save("newSheet.xls")
>>>
This produces a workbook with one sheet called "New Sheet" that looks like this
Hopefully this helps