Hi harbinger,
I think the file format is ok actually... What you're seeing is Unix format instead of Windows format, so each line ends with just a line-feed instead of a carriage-return-line-feed like Windows uses. If you open it in Wordpad instead of Notepad, you'll see it displayed correctly. I haven't heard of any problems loading it into MCE, so I'm wondering if there's some other problem somewhere. Let us know a little more about what you've tried and what you're seeing, and I'm sure we can figure it out.
Thanks,
Russell