Using -replace on pipes in powershell
This should do the trick, it'll go through all the lines in the file, and replace any "a" with "b", but you'll need to save that back into a file afterwards
cat file | % {$_.replace("a","b")} | out-file newfile
To use the Powershell -replace operator (which works with regular expressions) do this:
cat file.txt | % {$_ -replace "\W", ""} # -replace operator uses regex
note that the -replace operator uses regex matching, whereas the following example would use a non-regex text find and replace, as it uses the String.Replace method of the .NET Framework
cat file | % {$_.replace("abc","def")} # string.Replace uses text matching