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Originally Posted by swr999
My sense of the usage here is that since this is a very formal (and formulaic) way to conclude a letter, the person doing the "saludar-ing" is put in the third person, le saluda atentamente - and then your name below.
Please correct me if I have misunderstood this.
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I agree. This is very frequently done, you use the verb in the third person meaning that the person who's signing the letter is the one that 'saluda'.
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although "saludo a usted" sounds awkward.
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It sounds arcaic to me. I've seen letters written at the end of the 19th century or beginning of the 20th century that use that term.