Which text editors (free or commercial) handle character encoding and Windows/Unix line breaks properly?
Here's a list of Text editors and their newline support.
Also see this list and look at the Newline conversion field
Notepad++ is free and handles this dandily. Not to mention it's quite handy for plenty of other text-editing tasks.
textpad does a good job. i like version 4.7 it is much nicer than 5.*
Notepad++ is really good.
Scintilla and Scite are my favorites but there are lots of good ones that will do what you want
I can't think of any that does not. I do not count notepad.exe.
Eclipse also does a great job between reformatting between windows and Unix. Additionally as mentioned before, Emacs is great too.
I'm having no problems whatsoever with formatting, special characters and umlauts by using IDM UltraEdit.
jEdit does it.
On Windows you can use PowerShell ISE for editing files with Unix line breaks.
The only side-effect I observed is that you have to set "Save as type" to "All files" on "Save As..." command to avoid appending .ps1 file extension.