Want to preserve Unix newlines when downloading text files

When I use SmartFTP to download source code text files from my webhosting server (a Linux machine), SmartFTP converts the newlines into DOS-style carriage returns.

Is there some way I can prevent this so that I download exact copies of the files to my local HD?

Make sure you select the "Binary" mode in the transfer settings.
Settings->Transfer->ASCII/Binary

If Ascii mode is enabled the server converts the line feeds, SmartFTP does not temper the data in any way.

Regards,
-Mat