It seems that the problems has not been resolved yet.
When you have unix files with some ^M (CR) signs inside then pspad shows that
the file is of dos type which is wrong and more - after changes and saving it
changes other lineends into dos (CRLF) instead of preserving unix ones (LF).

For instance when using sed:
sed -e 's/^M//g'
of course ^M is not visible - pspad shows it as a new line character.

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