Here is a link to a good post talking about this issue. And another specifically about Dreamweaver.

What OS are you using? What OS is on the web server? Do others upload to this server?

Maybe someone else is uploading incorrectly. Maybe their transfer method or FTP program is incorrectly set.

It does appear that ASCII is the correct method, but you may need to make sure the line endings are set correctly in your editor to match the server.

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-- Bill
"Why is it drug addicts and computer aficionados are both called users?" -Clifford Stoll