It appears the delivery issue you mentioned is addressed in 3.8.0...
$Id: CHANGELOG,v 1.462 2007/03/18 17:08:49 jonz Exp $
Version 3.8.0
-------------
[20061210.1435] jonz: fixed message corruption problems with direct delivery
when using direct delivery (e.g. DeliveryHost), certain servers require a
linefeed after carriage return otherwise the message will become
malformatted.
...
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