This issue came up on the HTML Working group list.
The current practice[1] is that the LF character is what matters.
The spec will say that CRLF is the correct way to break a line,
but it will encourage browser implementors to accept LF alone
as a linebreak, and caution authors and editor implementors
that CR alone will _not_ work. (right, Mike?)
Dan
[1] http://www.acl.lanl.gov/HTML/html-archive.messages/432.html
    Date: Thu, 22 Sep 94 14:45:14 EDT
    Message-id: <CMM.0.90.4.780259432.reed@hades.cshl.org>
    From: Corprew Reed <corp@cshl.org>
    Subject: Re: Character Data