If there are newLines characters in the record data, SQl Server Management Studio in Grid view shows the record as one string, without indication that newlines are present.
It causes confusion to the user, invalid interpretation of the data and even data loss.See scenario in my post http://geekswithblogs.net/mnf/archive/2008/11/13/sql-server-management-studio-doesnt-show-new-lines-in-records.aspx
It will be good if newLines will be shown as actual new lines(consistent with SQL Server 2000 Enterprize Manager) or as some special character(e.g \n or |) to inform user.
Ideally method on new line presentation could be configured in Tools/Options/Query Results/SQL Server/Results to Grid.
2.By the way, separate suggestion: make Results to Text Maximum Length of the output default to 8192 (rather than 256) to avoid truncations, that are not obvious.