Waffle, you totally made my day !
I teach a physical computing class with Arduino, SerialProxy and Flash. As new Arduinos are being plugged in by the students, the stupid FTDI driver keeps creating new virtual COM ports. Of course, when the students reach COM10, serproxy stops to work.
There is a workaround (which I talked about on my blog : http://www.cote.cc/blog/serialproxy-vs-com10-ultimate-deathmatch
) but using this patched version of serproxy is going to be so much easier.
I fixed the carriage returns as you described and was also able to compile it (with the COM port fix) in Visual C++ 2008 Express.
I will thoroughly test the patched version during class next week (where I can get my hands on more than 10 Arduinos). Once tested, I will update my blog post and make both the patched source and compiled version available. I will list them as version 0.1.4 so it's not mistaken with the older (unpatched) version. I'll post back as soon as it's done.
Thanks again mate.