I believe it works, though I haven't tested it too throughly. Though Valgrind doesn't complain and it seems to do the job. (I downloaded a file written on MS-DOS and it ran it through via: 'fmt -d file.txt' and it works on it.)
Well this is a bit embarrassing, it appears that my patch does indeed change the output a bit that was subtle in the particular file I was working with and it is obvious as to why now. Oh well, that is what I get for not testing much.
So it is indeed a broken, unofficial feature.
I'll try to fix it,
William