\r\n in data breaks php

Server1: CENTOS 6.4 Postgresql-8.4 PHP 5.3 Server2: RHEL 5.2 Postgresql-8.1 PHP 5.1 Bother servers serve the same php pages that connect to a postgresql database. Both servers have magic quotes turned off. I have a problem with carriage returns in the database. They are stored fine but when selected in a query there is a problem. The twist is the problem only happens on the server2. Any record with a carriage return, when selected by a php page, does not display any of the fields values in the form that the data should populate. All the boxes are empty. If I manually remove the carriage returns through phpPgAdmin then the form does display all the field data. Since the same code works on server1 but not on sever2, I must assume the problem is a configuration issue. Not sure if it's with PHP or postgresql. Any insight is most welcomed. Marc