Hi Matt:

Can you check the html textarea using your browser's debugging tools. It should look something like:

<textarea name="@note" rows="10" cols="72" edit_id="eta_0" wrap="hard"></textarea>

note the presence of wrap="hard". If this is missing, please edit
the issue.item.html template in the html directory of the tracker
and add the wrap="hard" to the template.

Also when you have no line breaks in the message, are you using the return key to add line breaks when you create the message?