It appears that this bug still exists inthe 2007 SDK BETA.  Last comment from Axosoft on the thread below implied that the next version would have a fix for this.  Is there going to be a fix for this at any point?  The thread below was locked, but this is definitely not resolved.

I found this was not resolved because the 2007 upgrade appears to have dropped the trigger I created to band aid the issue.  Once I put the trigger back in, the carriage returns were once again carried through.

http://forums.axosoft.com/shwmessage.aspx?ForumID=13&MessageID=7781