For example, the following sample text:
This is line 1.
This is line 2.
Would appear as:
This is line 1. This is line 2.
Looking at the code path for this, I also noticed that character and word size limits are not being respected. The problem has to do with comments being processed only when UBB code is on.
Attached is a quick and dirty hack to fix this problem. It pretty much mimics the behaviour of JOSC_ubbcode::initUbbParsing(), without the processing of UBB code tags.
ubbcode_newlines_limits_patch.txt