Problem moving from RedCloth 3.0.3 to 3.0.4

Hey all:

I've moved my application from my own computer to a Textdrive server,
and in the process, switched from using RedCloth 3.0.3 to 3.0.4.
Unfortunately, either the Redcloth version switch or the server switch
has introduced a new problem: when I use the to_html method, two
consecutive newlines are no longer converted to paragraph tags.
Instead, any number of newlines are converted to a single <br />.

This problem didn't exist on my own machine--as I expected, two
consecutive newlines became paragraph tags.

Any ideas?

Dave Anderson