I'm not sure how the information is sent or stored in Web2Live, but I have fixed this in YASS with
code:
foreach($_POST as $key => $val)
$_POST[$key] = str_replace('%0D', '', $val);
where all the data sent is URLencoded, %0D represents a line break. I replace it with an empty string.
Had a similar problem with the + character. It was being displayed as a space instead of the literal + character.