Two readers reported a similar issue: When you copy text from a web page in Internet Explorer 4.01, it strips the carriage returns from the document. Actually, I find this to be an asset when pasting text into a program that supports word wrapping, such as most word processors (including ClarisWorks and Word). It prevents unwanted hard returns from messing up the formatting. However, when pasting into a program such as BBEdit, it does not work as well: your entire Clipboard selection pastes as one (very) long line of text.
Navigator does not strip the return characters. So, its pros and cons are reversed.
Update: As pointed out by Dan Ilut, you can turn on word wrap in BBEdit. It has a "Soft Wrap Text" option. This should resolve the long line of text glitch.