Check the documentation within the Mac p2c archive or visit GNU home page for more information. We do not support p2c. We are providing it AS IS to Macintosh programmers.

Yes. Yes it does.

No. No it doesn't. Try saving all of your Pascal files with carriage returns only (Macintosh), without linefeeds (UNIX/DOS). This should take care of the carriage return problem. You're also more than welcome to fix this problem in the included source code.