[ProDigit]

that's actually pretty easy to do in Word,
however, I don't know if the macro can do that the way I would solve it, since the macro doesn't always do identically what you ask it.

basically you need to convert ^m to .. say a space, and then use trick above to erase double spaces.

A code like this already exists.
I don't like working with hard return text files, I'd rather choose html.