This may have to do with the differences in how line breaks are represented in Unix and Windows. In Unix, they use the LF character to represent line breaks, and in Windows, they use the LF and CR characters to represent line breaks. Wikipedia sums this up nicely in
http://en.wikipedia.org/wiki/Newline. Since the Reader runs on Unix (Linux), and Connect runs on Windows, conversion problems may occur. However, this difference is common knowledge among cross-platform developers, so it's doubtful the source oof the problem. Still, I wonder how well RTF retains its formatting when it moves between Unix and Windows. I'd have to look at the raw RTF code to see if this is the case.
-William