getting extra \r introduced into html file when "> hg update" to it

[Zorba]

I've committed some files to my repo, and then as a test, I've deleted all 
files/folders in the working dir (excepting .hg and .hgignore of course!) 
and run > hg update -C

I've then compared what gets produced with a backup copy from before the 
commit using a windows file/directory diff tool (ExamDiff Pro)

Some text files look like they are being created with an extra \r char when 
being >hg updated
i.e. where \r\n (hex 09 0A) was in the file originally, now we have \r\r\n 
(hex 09 09 0A) !!

I'm running hg v1.1.1 on windows.
I also have TortoiseHG 0.5 installed, but using the command line, which is 
clearly the 1.1.1 version ( > hg version )

This is screwing me up in some editors, but more importantly, the files I 
versioned are not what I'm getting back !

Anyone seen anything similar or have any ideas ?