A. This is because UNIX files use just a linefeed (LF, 0x0A) as a record terminator. NT used a carriage return plus linefeed (CR+LF, 0x0D0A). The BCP \N character resolves to CR+LF.
You have to reformat the file using a tool like AWK/SED/PERL to convert the reformat the 0x0D character to 0x0D0A