We are storing in the database plain text messages formatted with new lines.
When it was required to update the message, my colleague used SQL Server Management Studio to retrieve text in Grid View.
The text was shown as one long string without any newline separators. She copied the text to editor, updated it and use SQL Update statement to save the text back to the database row.
The problem was that all new line formatting was lost.
SQL Server Management Studio didn't indicate new lines and causes confusion to user.
I beleive that SQL Server 2000 enterprize manager showed multiple lines correctly
As a workaround(if user is aware of this behaviour) user can use "Output to Text", because text output handles new lines correctly.
Note: if you are using "Output to Text", don't forget to change in Tools/Options/Query Results/SQL Server/Results to Text Maximum Length of the output to 8192 to avoid output truncations.