Uh, I think you have misunderstood me. The newlines are part of the data. They should be in there. No reason to hate Microsoft here. PROC IMPORT is doing the wrong thing. The quoted string does not end, but the record does because of the newline. The quoted field carrys over to the next record in the file. When I open the CSV in Microsoft it opens properly.
Here is an example of the CSV file
Name, Address
"Bob", "123 Sycamore Ln"
"Fred", "200 Main St
Apt 200"
Notice that the second address contains a line break. PROC IMPORT chokes on this.
As for the solution from Mike, I realize that I can do what you describe to open and save, however, this presents another problem. MS Excel assumes that the CSV is ASCII data which it isn't. It is a UTF-8 file. So opening CSV and saving to XLS causes transcoding of characters such as the registered trademark symbol. Ouch.