Well, what do you mean "dont[sic] come out formatted right"? Do you see a literal backslash followed by an 'n', or is there simply no line break?
If the former of the two is the case, make sure you used double quotes as your string delimiter in PHP (as this is the only time the backslash escape sequences are rendered as special characters). If the latter is the case, then you might consider that browsers (I don't know about PHP Designer) don't look for line feeds ("\n" in PHP) to separate lines; instead, when rendering HTML, they look for the <br> HTML entity.