diff --git a/dlls/msvcrt/file.c b/dlls/msvcrt/file.c
index 8945044..ee99eb3 100644
--- a/dlls/msvcrt/file.c
+++ b/dlls/msvcrt/file.c
@@ -1639,27 +1639,6 @@ int CDECL _rmtmp(void)
 }
 
 /*********************************************************************
- * (internal) remove_cr
- *
- * Translate all \r\n to \n inplace.
- * return the number of \r removed
- * Corner cases required by some apps:
- *   \r\r\n -> \r\n
- * BUG: should save state across calls somehow, so CR LF that
- * straddles buffer boundary gets recognized properly?
- */
-static unsigned int remove_cr(char *buf, unsigned int count)
-{
-    unsigned int i, j;
-
-    for (i=0, j=0; j < count; j++)
-        if ((buf[j] != '\r') || ((j+1) < count && buf[j+1] != '\n'))
-	    buf[i++] = buf[j];
-
-    return count - i;
-}
-
-/*********************************************************************
  * (internal) read_i
  */
 static int read_i(int fd, void *buf, unsigned int count)
@@ -1686,18 +1665,25 @@ static int read_i(int fd, void *buf, unsigned int count)
     {
         if (MSVCRT_fdesc[fd].wxflag & WX_TEXT)
         {
-            DWORD i;
-            /* in text mode, a ctrl-z signals EOF */
-            for (i=0; i<num_read; i++)
+            DWORD i, j;
+            for (i=0, j=0; i<num_read; i++)
             {
+                /* in text mode, a ctrl-z signals EOF */
                 if (bufstart[i] == 0x1a)
                 {
-                    num_read = i;
                     MSVCRT_fdesc[fd].wxflag |= (WX_ATEOF|WX_READEOF);
                     TRACE(":^Z EOF %s\n",debugstr_an(buf,num_read));
                     break;
                 }
+                /* in text mode, strip \r if followed by \n.
+                 * BUG: should save state across calls somehow, so CR LF that
+                 * straddles buffer boundary gets recognized properly?
+                 */
+		if ((bufstart[i] != '\r') 
+                ||  ((i+1) < num_read && bufstart[i+1] != '\n'))
+		    bufstart[j++] = bufstart[i];
             }
+            num_read = j;
         }
         if (count != 0 && num_read == 0)
         {
@@ -1732,10 +1718,6 @@ int CDECL MSVCRT__read(int fd, void *buf, unsigned int count)
 {
   int num_read;
   num_read = read_i(fd, buf, count);
-  if (num_read>0 && MSVCRT_fdesc[fd].wxflag & WX_TEXT)
-  {
-      num_read -= remove_cr(buf,num_read);
-  }
   return num_read;
 }
 
@@ -2219,17 +2201,13 @@ int CDECL MSVCRT_fgetc(MSVCRT_FILE* file)
 {
   unsigned char *i;
   unsigned int j;
-  do {
-    if (file->_cnt>0) {
-      file->_cnt--;
-      i = (unsigned char *)file->_ptr++;
-      j = *i;
-    } else
-      j = MSVCRT__filbuf(file);
-    if (!(MSVCRT_fdesc[file->_file].wxflag & WX_TEXT)
-    || ((j != '\r') || (file->_cnt && file->_ptr[0] != '\n')))
-        return j;
-  } while(1);
+  if (file->_cnt>0) {
+    file->_cnt--;
+    i = (unsigned char *)file->_ptr++;
+    j = *i;
+  } else
+    j = MSVCRT__filbuf(file);
+  return j;
 }
 
 /*********************************************************************
@@ -2602,8 +2580,6 @@ MSVCRT_size_t CDECL MSVCRT_fread(void *ptr, MSVCRT_size_t size, MSVCRT_size_t nm
 	memcpy(ptr, file->_ptr, pcnt);
 	file->_cnt -= pcnt;
 	file->_ptr += pcnt;
-	if (MSVCRT_fdesc[file->_file].wxflag & WX_TEXT)
-            pcnt -= remove_cr(ptr,pcnt);
 	read += pcnt ;
 	rcnt -= pcnt ;
         ptr = (char*)ptr + pcnt;
@@ -2817,9 +2793,8 @@ char * CDECL MSVCRT_gets(char *buf)
   int    cc;
   char * buf_start = buf;
 
-  for(cc = MSVCRT_fgetc(MSVCRT_stdin); cc != MSVCRT_EOF && cc != '\n';
-      cc = MSVCRT_fgetc(MSVCRT_stdin))
-  if(cc != '\r') *buf++ = (char)cc;
+  for(cc = MSVCRT_fgetc(MSVCRT_stdin); cc != MSVCRT_EOF && cc != '\n'; cc = MSVCRT_fgetc(MSVCRT_stdin))
+    if(cc != '\r') *buf++ = (char)cc;
 
   *buf = '\0';