If you need to put carriage returns in your lookup formulas you need to implement this as a seperate lookup formula.

In rich text e-mails you can use the formula '@newline' which will insert a carriage return/line feed into the text. But, this will not work on MIME text/html emails as carriage return/line feeds are not rendered.

In HTML you need to use '
' tags.

Here is how to do it:
1. Create a new lookup document as below (see attachment newline.txt for exact formula)

2. Use the newline formula in your other formulas

NOTE:- This formula detects MIME and assumes it's in HTML, therefore emails sent as text/plain will not have the carriage return inserted correctly.