I find this more flexible as I can use it to do pretty much anything I want.
eg:
$text = ereg_replace(chr(13),"<p>","$text");
= larger line breaks
$text = ereg_replace(chr(13),"</td><td>","$text");
= when inside a table will put the paragraphs side by side
or
$text = ereg_replace(chr(13),"<hr>","$text");
for a horizontal rule between the paragraphs
I've never tried it but you could probably put a new image inbetween the carriage returns on news stories. Images could be uploaded with the name as the id number+1 and use the file_exist function to see if there's an available image and plonk it in.
I'll have to look into this one...